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Home My WebLink AboutR-84-02911-33-1081 l�r A RESOLUTION WAIVI`:G THE REQUIREMENT ' Or A FORMAL COMPETITIVE BIDDING PROCEDURE FOR THE ACQUISITION OF SER- VICES, I?R0.! MIA•II CAPITAL DEVELOPMENT INC. (1•:CDI) , IN CONNECTION WITH THE 11ANAGERENT OF A $1,300,000 REVOLVING LOANS FUNDS (RLF) PROGRAM AND IN CONNECTION WITH AN AGREEMENT FOR THE ADMINISTRATION OF THIS PROGRAM IN THE AMOUNT OF $120,000; ALLOCATING FUNDS THEREFOR FROM THE NINTH YEAR COM-MUNITY DEVELOPMENT BLOCK GFANT PRCGRJV1; FURTHER AUTHORI ZI`IG THE CITY MANAGER TO EXECUTE A CONTRACTUAL AGREEMENT WITH MCDI, IN SUBSTANTIALLY THE FOFM ATTACHED HERETO, FOR THE MANAGEMENT AND ADMINISTRATION OF SAID PROGRI01; FURTHER PROVIDING FOR TILE ADOPTION OF THE FINDINGS AND CONCLUSIONS SET FORTH IN THE PREAMBLE OF THIS RESOLUTION BY A FOUR -FIFTHS VOTE OF THE 14EMBERS OF THE COM1MISSION. a . . WHEREAS, the City Commission is committed to economic development and the expansion of trade and commerce; and WHEREAS, businesses located in the City of Miami are in need of acquiring low interest loans for working capital and fixed asset -financing so that they can expand their operations and create new jobs; and WHEREAS, the City Commission adopted, ORDINANCE NO. 9639, on June 9, 1983 appropriating $1.0,003,000 for the execution of the U.S. Department of Rousing & Urban Development Commzunity Development Block.Grant (Ninth Year) Program; and WHEREAS, as part of this program $1.2 million was approved for Mia-mi Capital Development, Inc. 's (MCDI) establishment of a Revolving Loan Fund Our) Program and $220,000 was allocated for MCDI's administrative expenses; and WHEREAS, the Department of Economic Development (DED) has recommended that only $120,000 be allocated to MCDI for adminis- trative expenses and the balance, $100,000, be combined with the •$1.2 million to create a total RLF of $1,300,000; and CITY COMMISSION MEETING OF 14AR 8 1984 RESOLuhu;, 8 4 -291 �5 1111EREAS, t-1CDI t4as created in 1980 for. the purpose of prat.,-."Ldihi federal financial assistance to businesses on behalf of the City of Miami; and WHEREAS, the City of Miami through MCDI, is desirous of eValuating the use, for the first time, of said U.S. Department of - Housing and Urban Development Community Development Block Grant (Ninth Year) Funds for the purpose of providing a financial services and assistance progran to facilitate business development and economic growth in the City of Miami; and WHEREAS, since 1980, MCDI has been the only agency that the City of Miami has contracted with for the purpose of providing financial assistance programs of similar nature; and WHEREAS, MCDI has developed and acquired this experience by administering and managing a Federal Economic Development Admi- nistration $4.8 million Revolving Loan Fund Program and a $950,000 U.S. Department of Housing and Urban Development (HUD) Loan Grant Program; and �. WHEREAS, the specialized expertise of MCDI is --unique and constitutes the only reasonable source of supply for the services required for this Program and the City Manager has made such finding in writing; and WHEREAS, the City Commission, after a properly advertised public hearing, accepts and ratifies the City Manager's above finding; and NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1: The findings set forth in the preamble to this Resolution are hereby adopted as if fully set forth in this Section. Section 2: The requirement for a formal competitive bidding procedure for the acquisition of services in connection with the management of a $1,300,000 Revolving Loan Fund (RLF) Program 84 -291 M1 R8AS, MCDI was created in 1980 for the purpose of pribVidinj federal financial assistance to businesses on behalf of the City of Miami; and WHEREAS, the City of Miami through MCDI, is desirous of eVeluating the use, for the first time, of said U.S. Department of Housing and Urban Development Community Development Block Grant (Ninth Year) Funds for the purpose of providing a financial services and assistance progran to facilitate business development and economic growth in the City of Miami; and WHEREAS, since 1980, MCDI has been the only agency that the City of Miami has contracted with for the purpose of providing financial assistance programs of similar nature; and WHEREAS, MCDI has developed and acquired this experience by administering and managing a Federal Economic Development Adr.�i- nistration $4.8 million Revolving Loan Fund Program and a $950,000 U.S. Department of Housing and Urban Development (HUD)'Loan Grant Program; and i - WHEREAS, the specialized expertise of MCDI is --unique and constitutes the only reasonable source of supply for the services required for this Program and the City Manager has made such finding in writing; and WHEREAS, the City Commission, after a properly advertised public hearing, accepts and ratifies the City Manager's above finding; and NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1: The findings set forth in the preamble to this Resolution are hereby adopted as if fully set forth in this Section. Section 2: The requirement for a formal competitive bidding procedure for the acquisition of services in connection with the management of a $1,300,000 Revolving Loan Fund (RLF) Program 84'-291 - h - i fe Program in the amount of $120,000 is hereby waived and the provision of such services by Miami Capital Development, Inc. is hereby accepted. Section 3: The City Manager is hereby authorized to execute a contractual agreement with MCDI , in substantially the _ form attached hereto, for the management of the $1,300,000 RLF Program, and in connection with the administration of this Program in the amount of $120,000, with funds therefor allocated from the Ninth Year Community Development Block Grant Program. Section 4: The requirement of City Code Section 18.52.2- for following a formal competitive bidding procedure herein is hereby waived by a four -fifths affirmative vote of the members of this Commission. PASSED AND ADOPTED this 8th day of March , 9RALPHG. ONGIE, CITY -CLERK PREPARED AND APPROVED 13Y: APPROVED AS TO FORM AND CORRECTNESS: r E R. GARCIA-PEDROSA, CITY ATTORNEY Maurice A. Ferre MAURICE A. FERRE, MAYOR �(n 84-291 y 483 _ 184 MMAGEMENT BY OBJECTIVES FORM pages 19 of 21 'CONTRACTOR: MITI^1I CAPITAL DEVELOP14ENT INC. • _ in ccn'unci:ice� with the De artzrn..nt of Eeonanic Develo ment and the Office of Public Informatio;l OBJECTIVE #? 13 rvar.�.ti�r�c r�®z 7 —. will implement a marketing program to promote MCDI. JULY AUG. SEPT. OCT. NOV. DEC. JAN. FEB. MARCH APR. h1Av uJtlr ACTIVITIES • i a) Develop a slide presentation on MCDI's .. achievements b) Produce and periodically release articles for general and specialized media promoting MCDI's programs c) Make routine press releases Develop and produce brochures and flyers necessary to each of klCDI's and MCWDI's programs �e) Develop and produce MCDI'annual report ��EN� .Ion_Going activity (exte line from the beginning to the completion date and date the beginning and ending dates). nd a uVlll'tl��t�liiinl�il6+IrYdfii�iiieliii u�lm�di� id w i Ali i�uuliiiidio ii ii��IIIIIIIIIIIII Pa 19 of 21 1 � 0� F 0 , FY 183 - 184 MAiiAGEMEN7 BY ODJECTIVESRM C1 CONTRACTOR: MI AP1I CAPITAL DEVELOPMENT INC. ' 13 DW,1=ING - P1CDI in ccrjuncticn with the De artirn._nt of Eeoncanic Develo ment and the office of Public Informatioa OBJECTIVE#? ram to promote MCDI. will implement a marketing program JULY AUG. SEPT. OCT. NOV. DEC. JAN$ FEB. MARCH APR. MAC UJ'+r ACTIVITIES I a Deve lop Pa slide presentation on MCDI's achievements I b) Produce and periodically release articles for general and specialized media promoting MCDI's programs jc) Make routine press releases :d) Develop and produce brochures and WDlcss s necessary to each of MCDI s and MC programs 'Develop velo and produce MCDI's annual report ae� � I I� •n_�oamg ty (extend a line from the Beginning to the completion date and date the beginning and ending dates). WEIGENDw activi _,___ kv101 NOV . I DEC. I JAN . I FEB. I MARCH I APR. MAY vity (extend a lin e from the beginning to the completion date and date the beginning and ending datesj. 4jErGiijD On-Onacti JUIIE ' ACTIVITIES 01111111 t FY 183 _ 184 MANAGEMENT BY OBJECTIVES FORM Pagr3 21 of 21 (CON RACTOR: MIP0I CAPITAL DEVELOPMENT, INC._ ,OBJECTIVE #15 Conduct alternate monthly meetings of MCDI's Board of Directors NOV. I DEC. JJAq. I FEB. I MARCH I APR . 1-i AY JUPtE JULY AUG. I SEPT. I OCT. { A) Hold meetings of MCDI's Board of Directo s - B) Hold meetings of MCDI's Executive Commit ee Mold meetings of MCDI's Loan Committee .(monthly) the beginning to the completion date and date the beginning and ending dates). a ��-'Dn_!Gon�g a,�:.:;yity ,(extend a line from 9 1 84-291 84-291 84M-291 pur'o5e of Loan Fund The purpose of the loan fund is to finance retail ,commercion,al andingd industrial businesses through construction,*conversion, or the acquisition of land, existing buildings, leasehold improvements, machinery & equipment (including its installation) and working capital. The Loan fund wil•1 onlybeCitilaofle to liami'ssinesses Depart.mentof tnthose communities, Economic Development, in prescribed by tiCDI and she y conjunction with the community based organizations. Implementation *i1CDI will only participate in the financing of he permanent loans. The construction loan will be provided by an interim lender. MI tCDI will take out authorized interim lenders only if the authorization has been carried out in accordance with MCDI's authorization. S4--291 ect,ives of the Loan Fund d t r"4nad a. b. Target Area The ethe�Citywhich of SianiCSnDepartment Occur of teonomice0evelopment by agreement between and Miami Capital Development, Inc. i) The maximum amount loaned for working capital will be S50,000- amount- ;ianufacturer5 E I•lholesalers - will be eligible for the maximum loan. Retailers- However will be n t eceivablesthe andmaximum inventoloan turnover for pasts exceed $200,000; (ii) account r two years exceed 4 or more times; (iii) accounts receivable and inventory combined exceed the maximum of $50,000 by more than 1'2 times. Loan Start-up Operations- are limited to a maximum of $25,000 unless they are manufacturers and wholesalers and have injected the 20% cash requirement into the project. C. d. e. f. 9- h. Amou It-_(iil The maximum amount loaned for fixed assets will be $150,000. ' Interest Rate- Funds wbedloaned at a rate below the prevailing prime not rate but greater than Term- The maximum term will be 5 years for working capital and 15 years 25 years for loans funded through MiamiusefuCitywide of Dvelopmtnt, Inc.) for fixed assets based on the economic he ass. Private Sector Participatof j-1AllIfundsis eXpendedpected hoill be etoatched on the minimum 11';r-1g`ba:1c- tor funds on a rendThe abilityrofethecbusiness r will to secureeprivate sector on the financial structure financing. Other Sources of Financing I'�Col willnto injecteinlexcess1Ofn$1r"lnllionmthe anti City it is anticipated that private programs gh Federal, State and p r rams into eipated to be available throu these areas and throughout the Cit_v. Therefor total capitalisation is expected to be a minimum of $2.3 Million. Job Creation and Retention - It is projected that a minimum of 100 new jobjobill be created or retained as a result of the financing. The basis of this ,,till be for every $15,000 of these funds a minimum of 1 job will be created or retained. Types of Projects-nevelop7,ent will encompass a broad spectrum of s involving both start ups and established businesses business opportunitie with emphasis on large retail and manufacturing enterprises with the ability to create many jobs.. 21 '1 ..4:,; +ho CPT -vices of Community Based 84-291 Eligible and Ineligible S-mall Business Concerns For purposes of a RLF loan a business riay qualify for consideration, provided it Teets the following criterias: 1) Business is located or locating in an eligible target area. 2) Provided it is not a bankable loan (with or without f the Local, State or Federal the participation o Gove rnn=_nt, through their direct or auarantged loan programs. 3) Business is an equal opportunity employer. 4)t Business is not 'relocating jobs. 5) Project involves no negative environmental impacts. 6) Project impacts an adequate number of jobs to be created and/or retained. 7) Potential for jobs created to be filled by target area residents. 8) Ability to repay the loan. I.OT'E: Loan will automatically be denied for the following reasons: 1) If the funds are other:•lise available on reasonable terns (a) from a private financial institution, (b) 84--291 { 3i ice Of gets hot fe= the disposal at a lair 1 ` i3t� tea by the applicant in the conduct of its business or not reasonably necessary to its potential growth, (o) through -use of persona?• credit and/or re - partners., management., or princi- sources of the owner, (d) from other Pa stockholders of the applicant, Government agencies which provide credit specifically for the applicant's type of business, or (e) of credit; other known source _ 2)' If 'the loan would be for the purpose of (a) payinc applicant who off a creditor or creditors of the apP icnto are inadequately secured and are in a position sustain a loss, (b) providing funds for eistribution to the owner, partners, or shareholders or paymenta debt owned to a of the applicant, (c) refunding e len_ small business investment company, or (d) replen- ishing working capital funds previously Lsed for such purposes; 3) If the loan will provide or free funds for specula- tion in any }rind of proper�.y, real or personal, tangible or intangible; 4) if the applicant is a charitable ins`itution or nonprofit enterprise, except for cooperatives which carry on a business activity for the purpose of obtaining pecuniary benefit for their me-„ibers in the operations of their otherwise eligible small business concerns; 5) If the applicant is a newspaper,book publishing company, magazine, or similar enterprises; 6) If any of the gross income of the applicant (or any of its principal owners) is derived from gambling activities, except for those small firms which obtain less than one-third o �tieir �ress i:,c•:;e Iron i = nceme or commission from the sale of official state lottery tickets under a state license; 7) If the loan is to provide funds to an enterprise primarily eligaged in the business of lending or. investments or to any otherwise eligible enter- prise for the purpose of rirancing investments not related or essential.to the enterprise; $) If the purpose of the loan is to finance the ac- quisition, construction, improvement, or operation of real property which is, or is to be, -held for .sale or investment; �)If the effect of the aranti.ng of tine financial assistance will be to encourage zjononoly or will be inconsistent with the accepted s alli:ards of the T.a;.erican system of free c, r,.3eti tive enterprise; 84--291 84-291 . c ti f 31 1 1 i u t 5 1 .11 7 7 1 Z 1�i #rhe project costs should consist of ell the eligible ally the e j SC will incur to complete the proposed p ]el t. total project costs may be considered similar to all the e'r.riemes covered in a turn key operation. Elements of project costs In developing the aggregate costs the F/A should ta)K-3 into consideration.. the follcFring guidelines: a) Land SEC Value of land will be the actual purchase price to the plus any improvMents thereon paid in full since the date of the purchase. In some circumstances the use of appraised value may be justified. NOM The Executive Directnr of 29CDI must justify in wzitirx any appreciated value placed on land that ex the original purchase price. The justification rust be supported by one or more of the following: ide evidence of funds expended for �) SBC must prov 3rrprovenents . 2) An appraisal of the land from a nationally recognized v appraisal society. 3) Where appraisals fram a recognized appraisal society nt canrmt be obtained, appraisals by t:•o c,, it a interest real estate f ems, who do :zit have a pec': niY interest in the project is required. b) Land Iirprove� ent, Japrove nentto tide land which are a portion of the project costs s include but are not limited to the following: K { I ,F r 84-291 t i uY yr ` 1) s i.r9d 3-,sjPi o'.re;vents (contii-,ed) ,z . ' ltr�prove;,ents which are Paid through soeciz) ��3= be inc assessment or users fees will not i ded determining the elements of project costs. t) Purchase and/or Remodel an Existing Building The cost of purchasing an existing building generally includes the value of the land and applicable fees_' The. basic philosophy of the RLF loan program is to sound development or preserve the exis- promote the L be a?;ercised of an SBC. Therefore, care irus� lance - I_ must acquisition of an existing �acility- _ in any theme of be definitely demonstrated what ownership is achieved on all economical basis to the SBC. 1) The cost over the life of the loan of a new build-. ing vs. an existing one, not just the initial costs, should be considered, as well as the possibility "white elephant" someone wants to of it being a ould be obtained to support unload. Appraisals sh the purchase price. In the even` the appraia sals indicate a value that is less than the pVrc,.se - price, the F/A will be required to consider the lesser of the two. h' within the SBC and/or its 2) A change of owners ip owners and affiliates, may best be handled by other sources of financing, private or public, 21 and not by the RLF program. 3) in -the event the SBC were acquiring a building larger than required, said SBC must prove that they v�ill be utilizing at least S1 percent or more of the total rentable area. In such a case, the RLF loan eroar•��;, can be used for the ,urehase Of the structure and for renovating the facade (outside structure) and the space used by the SBC. However, RLF loan funds cannot be used to renovate the other portions not used or retained by the SBC. In1o:ovements (contiriued) Improvements which are Paid through special tart assessment or users fees will not be inciuded in determining the elements of project costs. Purchase and/or Remodel an Existing Building The cost of purchasing an existing building generally includes the value of the land and applicable fees.' The basic philosophy of the RLF loan program is to promote the sound development or p.nuserbe the exercised tance of an SBC. Therefore, care „'�st b exercised I � in any acquisition of an existing iact-Y- Host -lithere of be definitely demonstrated that ownershiphoc_ Q is achieved on all economical basis t o ` 1) The cost over the life of the loan of a new build—.- the initial costs, ing vs. an existing one, not just as the possibility should be considered, as well "white elephant" someone wants to of it being a Appraisals should be obtained to support unload. the purchase price. In the event the appraisals indicate a value that is less than the pyrc„ase be to consider the price, the F/A will required lesser of the two. 2) A change of ownership within the SBC and/or its handled by owners and affiliates, may best be private or public, other sources of financing, and not by the RLF program. 3) In.the event the SBC were acquiring a building that larger than required, said SBC must prove they will be utilizing at least 51 percent or . more of the total rentable area. In such a case, F loan �rocr. .r can be Lsec' for the ,arc ease the RL _ the `acade pf the structure and for renovating used by the (outside structure) and the s_cace to SBC. However, FLF loan funds cannot be used used or retained renovate the other portions not by the SBC. As to this effect a certification must be required from both 1;CDI and the general contractor perfor— ming the renovation. 9) Leasehold I�proverrients f inancing is permissible through the RLF loan program. Since absentee (.. ownership is proven to be one of the Tain ants to the re,,►ita'lization of cor, ercial areas, through the an SBC will be permitted to finance loan program, provided: t t' 4 f { f) FE t • ;F b) Tne L mil► — L-- ---- - -- --- of the lease. 3 � Const_*-uct a building - (only applies to loans funded through 1.0,7DI) Construction includes erection of a new building and/or a major addition to an existing building. The amount allocated to the project oc,st will be the funds required to eainplete construction of the building or addition. Wan proceeds may be- used for the construction of Ccr=ercial rental space only under the following conditions: Commercial rental space, up to 15 percent of the total space is permitted when (a) reasonable projections of growth indicate near future the SBC will need additional space in the reasonably and (b) due to the nature of construction, it is not The feasible ibe to build an addition to the building in the SBC M.Ist document in writing, that the business receiving the assistance will expand into the rental space within three (3) years after the completion of the building. purchase and/or Pprair of r►achi.ne_--Y and eo4E.uent• The purchase price, delivery costs and installation e>Tenses must all be considered in determining the amount allocated to the project cost. When existing er3uigmer► t or machinerY is being moved to a n6w location the cost of disount a, �vTxJ and installing the eiigrent mist be determined. Themust determine that the machinery and ecN.ig;,ent is adequate to meet the sBC's rents and the cost is reasonable. Costs will be det Lrom 2 bids, rc�uested and received in writing. Purchase of fu-� nature rx3 f �::res ted to The s shall be and etfe�-ned urestithe samst e manner assetin ject posts shall (e) above. I%brkizY--I Caaital The RLF provide the SBC, s with the caorking capital required t-? to a raxiirsm of S50,000, for the sound operation of the sbusiness. rr.�nv factors which aTfects the wo_kingcapital 84--291 other ' Other costs would 4nc.lud4e expenses relates to the project that have not been set lforth bove. f the constructionlon - for contingency fund ofuP t onsidered to avoid problems in costs should be cfinding - funds to -cover cost overruns. Fees or costs related to project cost must be given Close attention by the F/A so that only those appli- cable are included. The following should be considered-- 1) 2) 4) 5) Legal expenses that are incurred for the project,. rr.ay be considered by 'she RLF loan pro9'ram- The estimated expense for interest when interim financing is available and approved. rofessional fees applicable to general Generally, p ineering, legal, etc. en surveying, accounting, g may be included in project costs financed with the RLF. Such fees should be computed on the basis of actual hours devoted to specific eificrct Architects fees based on a pcofthe Project- cost may be included, provided they are in Line with rates for such services orevailing in the . area. Architectural -Engineering (A&E) services are to be -performed by qualified professionals_ They shall be licensed by the State z=n° Local novern- ments_ To cualify for inclusion in project cost, AbE services cont' racts must be su'�mj meted, for t`Ie r,LS spate acceptance by IICDl . These aOr ee, .eI; :`st specif ically ��rlat services are �o be I z-7i_ ed 2ild the amount of the fee. Attached to the contract should be the hourly rates utilized in estirating -the fee. - Counseling Fees are not a part of project costs, since and Technical assistance will be supplied by I•ICDI and it will be obligatory to be received by the SBC. r -• t .t 84-29i. C r �f�lect Financifrg i r general In all RLF loan applications the F/A must exert evert effort to secure the 'total participation of lending institutions, in which event it would prohibit V-CDI to fund the project. These efforts are not limited to banks and savings and Ions associations. The F%A should also contact insurance com- panies, pension funds, trust companies, 5BIC's, ;•;esbics, etc. Amount of the Loan r _• Based cn the guidelines set by the City and MCDI an SBC and its affiliates may request a maximum loan of $50,000 for working capital at an: interest .rate .nf :8a pet annum and for a term not to exceed 5 years, an& a maximum of $250,000 for fixed assets, provided that MCDI portion of the fixed assets loan be matched at least 50-50 with a private lending institution, our portion also being at an interest rate of no less than 8% per annum, and for a term not to exceed 15 years. ?:ote: Within the -Spectrum of fixed assets, loans for n ca pinery and equii:ment are not *to exceed a term of 10 years, while Real Estate loan could extend to the maximum allow- able of 15 years 3 Projttt Finaheintt Central In all RL loan applications* the F/A must exert every effort to secure the 'total participation of lending insti tutiors, in which event it would prohibit 1CDI to fund the project. These efforts are not limited to banks and savings and loans associations_ The F/A should also contact insurance co.,,- panies, pension funds, trust companies, 5BIC's, i•iesbics, Etc. Amount of the Loan Based cn the guidelines set by the City and MCDI an SBC and its a_filiates may request a maximum loan or $50,000 for• working capital at an: interest.rate.of=13a per annum and for a term not to exceed 5 years, and a maximum of $250, 000 for fixed assets, provided that MCDI portion of the fixed assets loan be matched at least 50-50 with a private lending institution, our portion also being at an interest rate of no less than 8% per annum, and for a term not to exceed 15 years. Note: Within the -Spectrum of fixed assets, loans for machinery and equii:ment are not *to exceed a term of 10 years, while Real Estate loan could extend to the maximum allow- able of 15 years. Availability of other financing A loan application will be accepted for processing if the SBC can show to the satisfaction of MCDI that the desired financial assistance is not available on reasonable terms from other sources. Participants The guidelines regarding the participating lending insti= tutions, both private as' well as public, are as follows: a) Preference_ No agreement to participate shall establish any preferences in favor of the participating institution_ b) Participation by State and Local De el,jc�ment Coimpanies- Qualified state and local developevt co;r_panies are eligible participants. 0 Participation with SBICs and ?•LSBICS: Qualified SBICs and MESb1CS will be acceptable sources of financing to participate with the RLF and/or finance the :hole project. e t1 L personal initiative$ as wel The F/A is expected to utilize the u�no5t p application- The P/A's as training and experience, in his handling of an t:ritten report should be clear, concise and accurate. Unusual factors or situations of importance, should be';�1,dations-inThe rF/A�shalnt lo�:eightall support writer's analysis and recor facts presented and state the ravorableaand un-orrvnotorabthe�loanrshoulddbe and shall then state an opinion as.to 1 hether approved. Pep�vrent ability: �„ Based on the requirements a greed bee1asonably assuretrepaynentdtakes�into P,LF loan must be so secured as to r Consideration earnings, management ability, and jresponsiblennto�repaysthe v:ell as physical collateral. The SB:. is totally lir the SBC•, must loan. The F/A, in analyzing the financial condiL�on o� determine that the SBC Will generate cbdeo?tionste arn9�st0retire andatoryithat obl i °ati ons to MCDI and other fixed ual all PLF loans be amortized in eqe°asl ssistedmayoperatetprincipal n onaseasonal and interest. However, the SBC to b iti Loan Committ=e, the basis, in %•:hich case, at the discretion of butneverless than semi-. loan nay be repaid in quarterly payments, annual payments of -principal and interest. Other considerations a) The F/Aandthe sonsider all ite.ms reconmendation report . listed below in preparation of his Loans to minorities Loans to aliens Relocation of a business Loans to businesses within the target areas of the City of miaml Federal Flood Insurance requirements Conp i lance Sri to Environment aI PrOLecti0n Ag�ricy 'equircaccnts Lead -Based Paint Poisoning Prevention Act Equal Credit opportunity Act f;ational Historic Preservation Act City Plans ' Loans to Finance Telecommunications Loans to Motels 84-291. .ti c) 0 `_lg� •L ,.rvi(_'15 LC:�Cs t �'::CC;`i� �±h:'O!�'%G- in Such a`rel` LA'Vely short time, : t ; s necessary t:.at the ,;,a�uri..y ,of loans for such facilities be : united accordingly. The RLF loan program, requests that r,.aturities for t:^use - ilities be held at no more than 10 years. Applications - Garment Industry Such RLF loans may be made only to assist an SBC that is a verticaliy integrated garment manfacturer, i.e.. the business assisted must make its own desians,'pur- chase its own'cloth, do its own cutting, do its own sewing, and maintain its.own sales and distribution_ These RLF loans cannot be made to assist contract or job shops, unless it can be demonstrated that the SBC to be assisted is well established and not dependent upon a limited source of business; that way contemplated more or expansion is not for.,the purpose of accomocating a contract now being performed elsewhere; and that the use of loan proceeds will result in a definite•long- term improvement. in the economy of the area_ P-llateral The report should give full details on all collateral to secure the loan, not just "tangible" collateral. if the loan is secured by other than tangible collater- al, outside net worth of guarantees, etc, the report must explain the nature of this collateral and its worth to MCDI as security to the loan. Comment on effort to obtain guarantees. if refused, state by - whom and why. .On all personal guarantees :obtained - from the' principals of the SBC to be assisted, `an agreement . of personal guarantee should contain a provision waiv- ing the guarantor's rights to seek recovery back from - MCDI, or limiting his right to recovery to the collater- al of the speci f i c project for which the loan was Made. Leasehold Improvement Collateral Closely allied with leasehold improvement financing, is determining the method of providing -,::equate col lateral in support thereof,. Obviously, no tangible equity exists in the property, except to the -benefit_ of the landlord. Other sources of collateral might_ be: Tangible collateral existing in various other assets of the SBC.: hssignment of leases - Outside net worth of guarantors. 84--291 AU rI t ► •.�jl, e�:cept in the case of a f2. rst'off�:ddeoaever, usually trill reduire a first lien position. subject to certain conditions it is possible for MCDZ to have or share a•.junior lien position, under a guaran- ty participation loan. s Prior lienholders may include banks, ill savings lunder associations, and other concerns who will qualify 3 the definition of an eligible participant in an-RLP loan. _ PecorL-nendation of Financial F,nalyst The F/A is expected to recommend approval or disapproval of every -loan application based on the analysis of the factors involved. Advice and opinions of other I4CDI person- nel concerning the merits or vaults of a given Loan pro- posal may be considered, but the final recommendation must be the F/A' s su , i ation of all aspects of the case and re- flect the F/A's own independent judgement.- If approved the Loan Committee an "authorization document" will be prepared stating the specific terms and conditions in which the approval is based. This authorization must be reviewed by IICDI' s attorneys for legal sufficiency and the. necessary documentation to disburse the loan should be sL-arted. If the reco:nmencation is for disapproval, the Executive Direc- reason for -same, in writing, t tor must state the o the. SBC. All -loans approved by the Loan Committee will be contingent to the approval of all other "companion loan". under requirements by the Equal Credit opportunity Act the decline letter must explain the reason, e.g. lack of SBC working capital could cause the -decline of the loan, or lack of reasonable assurance of the ability to repay the loan, and other obligations from earnings, other items are: z) Collateral, coils ic: red along with otiler credit factors, is not deemed sufficient to protect. the interest of M.CDI. b) Lack of reasonable assurance of ability to repay the . loan and other obligations from earnings. _ c) Lack of reasonable assurance that applicant will comply with the terms of loan agreement. Unsatisfactory experience'on prior loans. Not eligible 84-291 Assigrane_*it: The same F/A handling the RI.F package will have bO hardle the SBA package as well, observing the following rules. a) Tun F/A shall not call on the same SBC b) Each Companion loan will be processed as described by the appropriate procedure for that part-35=1at _;: l nan _ 84-291 + The analyst will rewire an average of 5 days to review thfl Borrower's iii.tial information. �'ne initial intnrviecs will be set � on T•. ednesdays, exce?t - . o the Loan Committee meets. n... LICn,TIW ;0, p' businesses this should ta}:e no longer For existing 30 days. For start-uP businesses this frill vary r-rom one (1) to three (3) months. i STEP r_-RMIT DDCISIMT: will review and check t`� aonlication for The analyst aceuracY. 'Phis nrooess cantake u*3 to 5 days. S'I'F'p 4 - ��I/ • BOr - I �-' SAL P�OCSSS : �eoending on the oollateral. t'�is Trill take from 10 is 30 dajs, This is a case by caSe situation. STD 5 - :9CDI �n21�.3ing on t decision of ttie Craznitt2e it can ra.►Zge fran j} to as long as 30 days. The Loan Revie.� C,arEnittee` VU to 1 day � Of each mn th. meets on th= ..nd .•ionday 0 cot mr., held on the 3rd "Nee-32,19SdaY O�-5 each M'nth' These meetings are decision of the C07.m ttee, a letter is final d_ _ Based on th. the Barra-,,er within 5 days Of t-he prepa,_d aro sent to Ccrrmittee meeting. NMI cIDSING: the loan, a cOmmtment After t!.e Loan Ccrmuttee approvesthis is Sig-.ied, by the letter is sent to the borrcy-mr- OncP- ed accepting the terr s and conditions, and retu'-r borrm%,er should take no longer than s to tj, .e closing prOcess is disbursed try BOrr0% 30 day-S. At closing the loan money ** N=: if the infonration which the applicant provides ' a -"Col is -,,,q 4.,mrp are no unusual lei-nS that 84-291L 0 .► . After t`-e Loan ccmnittee approves the loan, a cmmit-ment letter is sent to the borrv.•yer. Once this is signed by the borraaer accepting the te=s and conditions, a_nd returned to -wrDI; the closing process should take no longer than 30 days. At closing the loan crony is disbursed to Born' -r. * D1pTSz If the infoamation which the applicant provides :;©I is accurate and coaplete, and there are no unusual leins that restrict the oollateral re T ui red for the loan, then th-- average loan processing time from intial intake to the disbursement of funds should take an average of 45 days. 84-291 r -...-.-.-:.._-.-. 0 + This chapter prescribes standard procedures to be followed ijn the closing of loans approved under the RLF loan program. "Preclosing" refers to all actions and procedures approved reclosin conference and acceptance, including through the p 9 _ all necessary notifications_ - "Loan closing" refers to all actions and procedures per- formed by MCDI from the date of acceptance by the SBC. Expediting Closing All RLF loans must be established, soSBcatthe banksCloring their is not delayed by MCDI, borrowers,.the , representatives. Closing Procedures a) General - The authorization fordi'sbursement must be signed as of the date of approval. l) Ioan Closing costs► records, etc. - All loan closing costs (site surveys, plant surveys, title company reports, filing ` and recording fees, etc.) are to be paid by borrower or SBC fram its own funds or could be deducted at the time of dis- bursement from the loan proceed-s 2) Fees - There will be a loan origination fee not greater than T%of the project cost being financed by II=I. This will be deducted from the loan proceeds at the time or closing. preclosinq.Conference - This shall take place in order to arrive to an .agreement between MCDI and the SBC in regard to the loan's terms and conditions_ Reports - The loan closing Ciocuments will be prepared ith the instructions afore - by counsel in accordance wmentioned. It is essential that any Real h:state wort5age be recorded before starting construction whether t•iCDI is paying off an interim financing or is making periodic disbursements to meet construction expenses. In all cases MCDI will have via searches, surveys, and other items deemed necessary by counsel and/or the fi- nancing staff - _. M V M r:. 84-291 • o L Disbursements -- The procedures for niti Subse u� ._ . - ` sequEnt �isburse.�nents are the same as for the initza • disbursements. 84-291 a } t r i 1 i t i i r t 1 l r i f i.i t CO T a . riCI4 pOLIC"Y KID PRC=JR::S Capital Davelc_�nt, Ines (►9CDI's) Collection Po7 icy and Procedures to nan a healthy Revolving loan F Lld (Rif-) loan �rtfolio are designated� and eliminate defaults on loans. lne intent of a RIB is to fill gags in tl'.e financial market that inhibits economic dawiop.,en-. activities considered y�or-,�ant to the stability of a p a_r'ricular co -enmity. cne of the i�tant r c l nVOlv8s the Collection of loan re` aj�—tits. aspects of rimnaging the RLF � -. s_abill_and CJnL1��+43V].on oL L e This function is irz�ort_ar►t for the `y If initial loans are repaid, then additional loans canbe rraLe W fill financial gaps in o&. r depressed business districts- E.:sically, this is acco.�lisaed L fire (5) tier approach to potential collection proolerrs. ,.... ► mlkwu PWRT OUS: First Contact and Letter - 10 day. T1ie nave the legal right to denznd pay -,Tent in full on any loan When monzthly ts became overdue. During this stage of the oolleca�..ion procedure. = paymen•1CDI`s This letter secretary will write the debtor ten (10) days a.fL.= the due date. e.^.olLld ram's t cL""Y'Slt fi-n arci' 1 ' n forr- `. ? on, if not i ncluded in our files. If t,%j-re is no response by the t: antie`h (20th) day, 1AMI's sec-'etaiy wi17- call the debtor as an additional remLnder. . 84-291 e=eriencing financial difficulties shey are If the d�tors' response is that field visit. A letter (c�sh flay, etc.) a date should be set for a general confirming this rr�ting is mailed irrediately. there are two (2) categories of field xrisiis coa3u=teed by �;�I s Ess��ti ally, Y staff-c��eral or t_chni cal. During a general visit, 11AMI's Collection t'sn3�- +- to collect info regarding the business', financial c ,edition. atteTm,s atte:;�t to identify A c�neral review is Trade of the busi n_ss c aration in an ' t - ,-=ss and its nroblesn areas ,and acquire an intirate LT -=standing of the vaner. As Tru h inforrnati.on as possible pZry ?; n' ^g to the business should be gathered. �}�I's staff oerforres a detailed a�alyszs of During a ��chnical field visit, rs of the business financial records. An assessrent of all business proSlo� are dx r1'-nted. Spec ific re -Om- T►datiors are dev--loped for presentatl }� the Iran Co;rmittee. During the technical field visit, MIMI's •staff will Obtain current financial state.Tents . I f they are not av3i lable, staff mro ill Trake every effort to assele dcr-,xrentation tsupport suport the vaS.lai of the debtors difficulty in meeting the terms of the loan. If Trr�ratoriu-rs on restructuring of the debt appear to be the solution, then a forr. renrendation is made to I DI's Loan Co.Tmittee. oa 3rd 40.1M PAST DUE: Dates of ensuinq collection efforts. A mil -a -gram is automatically sent. This stace of collection occLrs aster i S' 1 iiC.11V', LI11S S� :D 1� for �ha C:-,Coi seventy (70) days of i_nacL:.vity. �� _ - s s,_a_�f during the forty (40) day staff that payrrezt in who pro;nised f'1CDI' '_ 9 full wauld be Than- 7..f``er sev nnty (70) drys of non-p�':�--nt it is a�,.�_r�nt •that the debtor is e =riencing fLnL-ncial difficulties. ir.erefo . the MCDI Collection ;13naa�r wi 11 c��.11 the c ::�btor and ��rra^"cam'- a cite for a �ch*ii cal field visit. I?uring this visit, the Collect. cz I'= na �r psi 11 follow a n n-ss r C7Ctt?rldn`_' the debtors financai1 co-�di ti_o:n. If it the s�egs n�c_�_��} ' an�sars t,�tle debtor is ca able of bringing his loan to a current status, a Cum -off date for receipt of this payment will be agr`edn (10 try 30 ca3ys ' spear _n) . Iq DI' s s t<3ff shot-ld rage every effort to ir�nti"�• sciric orable.-s a oro5lr��s are i Q�nti ficr', '•_�=DT's sLaif • the b::si ness hrs enco"rn. cred. Cn e �- should match and lo: to resourses noo=ssary. For eti_.ple, tine o�•:.er can 'x preferred to the entraprenaur institute or sa7e otter onganiZatiaz that �J:ciZ?i�ag in pr0%rici_ng '�ns�_:'cx�- i=n3 ;tMlTlicP.1 :ems:st_:nw. 84-291 )4tver` if it anmars that the debtor is not c4oable of bringing their loan t6 a current- status, MCDI's staff Tmast take appropriate reco.,�.tndations to 's 10&1 Ca,ttee (moratorium, rest_r-urture. etc.) 4th I-O.TL i PAST DUE: Cut -Of f Date - 100 Days. At this staga, grant--c r:ea-cures axe tali em A letter is sent to the debtor r from ?,):DI's Ef='cutive Director. Sa. the-ttached sa.-ple of a letter. h s letter tells the debtor that his loan file is bung au`oratical_y fo=v;ar�d to the Collection Attorney for legal collection prac`-Ums. The Collection Attorney perforrrs for MCDI under a srxcial asrany-a---ent. 5th IM'M PAST DUE: Bitter Date. . if after thirty (30) days the Collection nttorney has b:----n unsuccessful in collecting the debt stronger =asures rrrsst be imle�ted. :.ith the E--X iw Director's approval the Collection Attorney nest be instructed to issue a judgement for. the loan, foreclosure or any other drastic legal reasu+-+es to resolve the date. 84-291 - ,hance uie cl - - _ _ f r tLLmots `V ) a 1 ) r F t � ir k t 1 V 1 Y s is t t I i ) z t ) 14IAt4I.CAPITAL DEVELOPMENT, INC. MIAMI CITYWIDE DEVELOPMENT, I14C. 1 YEAR 83/84 OPERATING BUDGET SOORCE S OF FUNDS FOR FISCAL $220,000 CITY OF bJIAMI GRANT 40,000 DADE COUNTY GRANT 5,000 tII. INSURANCE EXCHANGE SERVICE FEE 22,000 IV. INTEREST FROMINVESTFtENTS INTEREST INCOME ON OUTSTANDIi1G LOANS V. PROJECTED $155,000 A. RLF/EDA 20,000 . B. HUD/mCOI u C.-HUO/MCWDI 180,000 r. TOTAL . PROJECTED INTEREST INCOME 83/84 LOANS V I, $180,000 'A. RLF/EDA 20,000 B. HUD/MCDI 20,000 C. HUD/MCvlDI "" -- 220,000 } .• TOTAL 5,000 �- r ViI. INTEREST INCOME CARRYOVER k, TOTAL FUNDS 83/84 692,000 I s 3 s , MMI-W P05ITIUy 'XXI:LC+ NLIAMI CIVWIDE DEVI�ApMMT, INC. M AMI CAPITAL DL•VMPMENT, INC. 1983/84 SALARY FORF�.ST FOR FISCAL► YF�R i s 4 84--291 NIA;,,! CITYWIDE DEVELOPMENT, INC. M_ MCDI/RLF MCtJQI BUDGET FOR FYE 83/84 $47,000 $217,000 �57,000 001 SALARIESJWAGES 3,146 179 9,179 100 FICA TAXES 2,465 12,240 9,215 130 GROUP INSURANCE 630 1,615 750 150 WORKERS COMPENSATION 300 160 UNEMPLOYMENT COMPENSATION 1,100 900 $77,044 �53,541 TnTG1 PERSONNEL COST.,****$Z41,334 620 RENT - SPACE . 640 PROPERTY LIA31LITY INSURANCE 670 REPAIR/MAINTENANCE SERVICES 680 PRINTING/BINDING i i s 59400 $ 5,400 $16,200' 7,200 7,200 1,600 •2,304 2,304 512 4,260 4,260 yfi0 1,125 19125 250 r 29308 2,308 5�4 119475 111,475 2554� 945 945 210 .675 ' 675 150 11775 1,775 450 -1- MIAMI CIT.YWI4.0EVELOPMENT, INC. MCWD&F TOTALS M_CDI MCDIIRLF BUDGET FOR FYE 83/84 _ $ T $ 100 ,00 $ 450 450 690 ADVERTISING 3,000 300 1,350 1,350 700 OFFICE SUPPLIES 6C0 60 270 270 722 OPERATING SUPPLIES : 2,00r1 ' 900 SOFA 900 760 BOOKS, PUBLICATIIONS, MEMBERSHIPS26 7,260; 3,267 39267 495 EIiPLOYEE PARKING 7,000 3,150 39150 840 CAPITAL OUTLAY t;� $119,210 N ......, TOTAL OPERATING G EXPENSE.. _ $491,129 . TOTALBUDGET ................... _ 7 2 _ Y 4 3: _ x p t > f S CID • »iY • i L -2-III III �I��III�Ii�IIIIII'III��p�I��III�PI�If��€i� I I I I I I I llllllllllllllllllltlllll I10 � ii of � FI'SCl1L YIAl". lJi�3/�'VL'i.'UG: i I,i,.r,�:`!l: uY L1+ t� :RSONNEL SERVICES 31 SALARIES & WAGES (See Attached) I0 FICA TAXES 30 GROUP INSURANCE 30 WORKMAN'S COMPENSATION 60 UNEMPLOYMENT COMPENSATION 1?ER'A 'ING EXPENSES 70 PROFESSIONALSSERVICES ,A. Legal Services EB. `Consultants for Special Studies & Projects (Private Consultants, NDC HALCYCON, INC. 13D ACCOUNTING & AUDITING. Annual Audit and Tax Preparation will be performed by Price Waterhouse 20 TRAVEL & PER DIEM Travel within and out of State for professional staff members. Examples of Projected 83/a4 Travel; CD FUNDS EDA FUNDS $144,450 $144,450 $ 32,100. $321,000 0.2179 91179 39146 21,504 2z o7n NDC Training Courses, Fla, IDC Meetings, CUED Meetings, SIDC 1eetings, Financial Analyst and Creative Financing Training Courses and Travel topFederal offices oin Atlanta, Georgia; IJashington, Florida Agency Offices in Tallahassee, Florida LOCAL TRAVEL - and fli1 ea ge EL e — month nrr rmnlnvee (210I.X 12 It 29500) 1 II ll 1I1 1 9 CO FUNDS EDA FUNDS - TERSONNEL SERVICES 9BtI $ 9,SGOI 510 COP1t1UCeCCT�ONeSMRoiCE$458 $4,260 $ 4,260 per Mo.) Serve 9 Service Charge MCWDI ($50 per Mo. Long Distance MCDIT($2per Mo.) p1CW(1 ($83 p " Long Distance 1,125 1,Z5 250„SQ�i 533 POSTAGE Correspondance - Newsletters Brochures Registered Mail Express hail 540 UTILITY SERVICES - Not Applicable 2,3�8 2 t3W 610 RENT - EQUIPMENT e $360.•x12Months Automobile 114x4 456 Postage Machine pt r.Audio/Video Equipment for 5 seminars $1 , 074. 2*55G 2°s„SQG 119475 11,47� 620 RENT - SPACE Present location of 1,700 Square " Feet @ $15 per sq. ft.• IIQ� 640 • 23 � �" I Tnnrt TTV INSURANCE/BONDING - 945. 945 - _4- EA 00 cD PERSONNEL SERVICES 670 REPAIR AND MAINTENANCE SERVICE Typewriters $311 Xerox Machine $1,189 680 PRINTING New Letterhead-MCDI New Letterhead-MCWDI New Business Cards-MCWDI New Brochures-MCDI New Brocuures-MCWDI Newsletter Vue Graph for Seminars 690 ADVERTISL I'll G Via radio, T.V. and Newspaper to announce our location and existing programs - also Business Publications National and in Florida. 700 OFFICE SUPPLIES 1,350 Xerox. tiachine Paper, developer, and dry imager General office (staples, pens, paper, pencils, etc.)........ ' 722 OPERATING SUPPLIES 270 Incidental Lunches, parking and other petty cash items. 750 BOOKS, FUSLIC'TITiS & rEMBERSHIPS 900 14emberships-C`.!ED, +E+DCO, Notary Public, etc.$950 N4iami sera id, iaMi Times, Miami News, 4qa11 Strect journal 1250 Business Sows, N'agazines; Business Week, Inc. Harvard Business Revie'd; etc. - $800 LIB... �.-- CD FUNDS EDA FUNDS MCWDI TOTAL $ 675 495 C14PLOYEE PARKING At a rate of $55.00 per month per employee - (Rate paid for City of Miami Employees) 31267 3,267 726 7,Z5 -5- I 0) CD FUNDS EDA FUNDS ptiClpi TOTAL. M PERSONNEL SERVICES 7,000 840 CAPITAL OUTLAY s 3,150 3,150 700 A. Four Security Lock File/Storage Cabinets $29000 a I B. Computer Related Products: Modem, and Paper, Software, an additional CRT Unit. $ 5,000 L j j • f =5 � T � � f } S Y ri l 1 i J t p t � S Y 3 y 1 t 7 'm 1 Y } s • r 04 1 Ur- `-J LV 1L U I SALARY FORECAST FOR FISCAL YEAR 1983/84 mum -CD ANNUAL SALARY POSITION TITLE NAPE ANDERSONf 55,000 EXECUTIVE DIRECTOR CLAUD STEVEN SMITH 39,000 DEPUTY DIRECTOR ROBERT BLOUNT 36,000 ASSISTANT TO DIRECTOR Programs 35,000 ALFREDO IZAGOIRRE ASSIST ANT TO DIRECTOR Community Affairs LORENZO SIMMONS 33,000 CHIEF FINANCIAL ANALYST 19,000 ADMINISTRATIVE ASSISTANT MADGE WARREN 217,000 4`111 7 be on the employee's anniversary date based on his/her performance, *NOTE: Salaries fnay adjusted RY . . . ... . ... ..... ... • -7- 1'll�\?:i l.l�l�i �f1L 1,�7! Ll�►'ili.{'+1 � I!�i�.. ,.lf\i`i Vi 1 J:. JL�LLV.".u.... � SALARY FORECAST FOR FISLAL YEAR 1983/84 1CDI-RLF ANNUAL SALAIR41Y NAME )OSITION TITLE $ 22,500 r PAULINE B. WALTON .. :INANCIAL SERVICES MANAGER ; 21,000 LUIS VANEGAS •Or,N OFFICER 13,500 TERESA GARCIA CRETARYIRECEPTIONIST 57,000 anniversary employee's date based on his/her Performance. ROTE: Salaries may be adjusted on the P Y 7 • f _. - , u R i t 3 SALARY I-ORECAST FOR FISCAL YLAR 1983/84 r : M1CWDI ANNUAL SALARY POSITION TITLE NAME r LA JOYCE BROWN -WORLD $ 14,000 SECRETARY 4 SENIOR LENDING OFFICER/503 PROGRAM MANAGER ROBERT DUI(y $ 33,000 $ 47,000 ors hislher WOTEs Salaries may be adjusted on the employee's anniversary date based • performance. 5 . • 3y L A a4 •lc': t. . i N t Ii I l i 1 P }, of 21 4 Fy '83 '©4 MANAGEMEN-r .oy'•00JECTIVES FORM �1 1 - -cu ' ,.�ti�S (1��loans .d1rrent financial data. E CTOR; b11At11 CAPITAL DES"+-G"rF;ET1i 1NC. rovlded .4CDI w1t i ANTRA i e tQ D w o ave not P JwE Technical A ".AY _ l rovi de Man ement andor pas ue status and�or FEfl , htAP.CN APR 1 OBJECTIVE l Te au a tnquen an Noll OEC• JAN• J'JLY AUG. SEPT. OCT. ---- ACTIVITIES a) Establish and maintain Financial Statement Tickler File. 40 ,Request for Financial Information rovi provided b) Prepare 1 etter and forvrard to clients ata� have not p MCDI with current financial 15th of each month. c) Prepare Overdue loan Report (as of " d) ,",nalyze financial statements ,in house". visit client e) Identify problem areas; rub�eVelop emsnd - (jointly) (jointly) realistic solutions . p et date(s) by Ni th " probl e ill clients eestablish currents and probl em(s ) �,hi ch loan wi 11 be brought solved• target dates - !lonitor clients .progress in meeting e the beginning and ending dates1 to the completion date and dat. tufty (extend a line from the beginning Ei1D :On -Going ac I FY 183 - 184 MANAGEMENT BY OBJECTIVES FORM x°DNTRACTOR: MIAMI CAPITAL DEVELOPMENT, INC. OBJECTIVE # ? To manage existing Loan Portfolia Page 2 of 21 A.CTIVITIES JULY AUG. SEPT. OCT. NOV. DEC. JAN. FEB. MARCH APR. MAY JUNE a) Review and analyze statements of all borrowers on the i following basis: Problem Loans - As needed. Now i oans - Quarterly. Performing Loans - Bi-Annually ib) Make monthly field visits to at least 5 existing t j borrowers. Businesses with f;n,ancial problems will get priority, accordingly to letter "a". — Prepare Internal Loan Portfolio Status Report for EDA. ) Prepare Portfolio Status Reports for circulation to "4CD1 staff .and Board of Directors. x ,j it �L�Ei�Efiail On-i;oumg activity (extend a line from the beginning to the completion date and date the beginning and ending dates). FY 083 - 184 MANAGEMENT BY OBJECTIVES FORM Page 3 of 21 • t ar CONTRACTOR. MIAMI CAPITAL DEVELOPMENT, INC. . OBJECTIVE N 3. To establish a Loan Workout Committee for Loans in default. i LEGEND On -Going activity (extend a line from the beginning to the completion date and date the beginning and ending dates). t ACTIVITIES JULY AUG. SEPT. OCT. NOV. DEC. JAN. FEB. MARCH APR. MAY JUNF. a} Identify members from different areas of expertise'. 6} Form Committee. c} Have committee meet once a month, in order to restructure loans and recommend management and technical assistance. d) Approval for each "problem" loan requiring re- structuring and!or material change to original terms and conditions. FY 183 ' -84 MANAGEMENT BY OBJECTIVES FORM CONTRACTOR: h1IAMI CAPITAL DEVELOPMENT INC. + ctinn 1Qrlil�°r folio OBJECTIVE N r. ,ge xi 1 JULY T'VI TIES t 1 3} Reviev, and analyze statements of all borrowers on tile f011ovring basis: Problem Loans - As needed. �lcia Loans - QuarterQi AnnualIy Iperforming Loans b} Make monthly field visits to at least 5roblemsnwill borrowers. Businesses WitRoflettera"a. get priority, accordingly �C) Prepare Internal Loan Portfolio Status Report for EDA. � } Prepare Portfolioard StatusDRepireits for circulation to .4CDIand i Page 2 of 21 SEPT. OCt. �NOV.��DEC.MARCH APR. MAY J!!NE AUG. 1 inning to the completion date and date the beginning and ending dates. LEGEC�d_______ On -Going activity (extend a line from the beg .' ■ 1 FY -83 - 184 MANAGEMENT BY OBJECTIVES FORM v4 Paq A of 21 ld" CONTRACTOR. MIAMI CAPITAL DEVELOPMENT INC. OBJECTIVE N a. To purchase or establish an SBIC. t , CH APR F1AY DUNE JULY yACTIVITIES 1Qption I / a) Obtain grant of $1,000,000 from Citoch fMiami; a i; proceeds of which will be used to purchase existing SBIC. b) Identify SSIC's available for sales. c) Select SBIC, prepare Letter of Intent and negotiate purchase agreement. d) Consummate Purchase of SBIC. !Opti^ onIi �a) Obtain grant of $140,000 to cover expenses incidents to the formation of an SBIC from scratch (de novo). b) Form Miami Capital Ventures, Inc. ferinof of c} P��pasliaresvofecommonplacement stocke($1a00uParfvalueg} at a ice per share of $1,000.00. AUG. I SEPT. I OCT. NOV. I OEC. JAN. FEB. MAR _ . purchase pr LEGEND_ On -Going activity {extend a line from the beginning to the completion date and date the beginning and ending dates). ,n (ACTIVITIES i JULY AUG. SEPT. OCT. NOV. DEC. JAN. FEB. MARCH APR. MAY JUNE - d) Prepare private placement memorandum subscription ' form for subscribers. e) Prepare private placement memorandum and subscription form cover letter. f) Obtain opinion letter from our attorneys as to legality of representations made in stock offering memorandum. in g) Develop marketing strategy gy for sale of stock. i h) Prepare list (s) of potential investors. ij Marshall investment banking and the other forces friendly to MCDI and/or to its management for use in achieving private capital goal (s). j) file application for a license under the Small Business Investment Act of 1958, as amended, to operate a small business. LEGEND On -Going activity (extend a line from the beginning to the completion date and date the beginning and ending dates).. 1p F FY 183 - 184 MANAGEMENT BY OBJECTIVES FORM CONTRACTOR: MIAMI CAPITAL DCVELOPMENT INC. OBJECTIVE 11 4 T urchase or establish an S31C. DEC. JAN. I FEB. I MARCH I APR. I MAY JUNE page 5 of 21 ;ACTIVITIES �/ i jd) Prepare private placement memorandum subscription form for subscribers. e) Prepare private placement memorandum and subscription form cover letter. ,f) to Obtain opinion letter from our attorneys as fffee ring legality of representations made in stock o jmemorandum. i Develop marketing strategy for sale of stock. Ih) Prepare list (s) of potential investors. {i) 'larshall investment banking and the Other forces friendly to MCDI and/or to its management for use * , in achieving private capital goal (s). ;;) File ap-plication for a license under the Small 9usiness Investment Act of 1958, as amended, to operate a small business. JULY I AUG. I SEPT. ' OCT. NOV. ^n-Goin activity (extend a line from the beginning to the completion date and date the beginning and ending dates). � 73E7� 9 II�IIIIVIII�d��l�%�mVII�dIII�IIIVIIIIIII�V�IIIIIIdmIIId�IIIIIIVuI�o�uI�V�V�V�ll�ioiuW'��a��i�lmu��lf��lllllllllllllllllllll�illllllllllllllllll I� tlilllIII IIIi u�i6hllulllliild�i�llllY�i�9Yl�l�i� �� t�.� ti� '� �9�` �a�11�I��f�iii�li�Ifili�Wlhl�llidtll111�111 r . - F Y in, - 184 MANAGEMENT BY OBJECTIVES FORM 1 CONTRACTOR: MIAMI CAPITAL DCVELOPMENT INC. 'OBJECTIVE # 4 To QVr hase or estahlish an SB1C. �1ACTIVITIES a ;d) Prepare private placement memorandum subscription i form for subscribers. I morandum and subscription ;e) Prepare private placement me I form cover letter. 1f) Obtain opinion letter from our attorneys as to legality of representations made in stock offering memorandum. c�) Develop marketing strategy for sale of stock. h) Prepare list (s) of potential investors. i) Marshall investment banking and the other forces �.. friendly to MCDI and/or to its management for use in achieving private capital goal (s). j) File application for a license under the Small Business Investment Act of 1958, as amended, to JULY E AUG. I SEPT. I OCT. page 5 of 21, NOV. � DEC. LJAN. LFEB.j MARCH APR. I MAY�JUII operate a small business. � � �--I--��— i ��1;END `On-ro;ng activity (extend a line from the beginning to the completion date and date the beginning and ending dates). OBJECTIVE: 5 I OCT. JAN . FEB • MARCH APR.. MAY Jti"tf~ 1 JULY AUG. SEPT. I III II I I I I I I' IIIIII III�III �iVh�fil�I�i��Y�iii191�V��iV9i'��°��ii�=�'' ----- R-ar• 40 1 • FY '83 - '84 MANAGEMENT BY OBJECTIVES FORM Page 7 of 21 CONTRACTOR; MIMH CAPITAL DEVELOPMENT, INC. OBJECTIVE #'6• To encourage and secure franchising�o uortunities for,minorities with National Franchisors. ACTIVITIES JUL' AUG. SEPT. OCT. NOV. DEC. 'JAN. FEB. MARCH APR. MAY a) Identify and contact 200 top franchisors through letters of interest. b) Mail follow-up letters requesting franchises to participate in a match making seminar. c) Advertise for interested minority business persons. d) Place data on franchises and interested minority business person into computer for matching; e) Interview interested business persons. f) Conduct match making seminars. g) Approv>e loans for franchise operations. I i_ �..r ...- .. LeGEND .0n-Going ,activity (extend a line from the beginning to the completion date and date the beginning and ending dates). u;;►t�; : i:Lti n ;u �cttl: u�� (7/1,i93 6/3U/84' C s o --- � j` �, C t.,. MONT11 Clients Interviewed I Submitted r-* I - - Jobs Preserved/Created L�u:era g e JUL 1 AUG SEPT i OCT ! NOV ; DEC JAN � FE5 ( `4AR APR TOTAL rIAY JUr1E i 10 10 10 30 ! t 3 3 3 9 300 50 50 ,' 100 500 40 5 5 10 ' 60 �.,.. 500 1 1 lintwe: Projected interest'income above -indicates interest earned on previous months disbursement, but does not accumulate. 5 y Page 9 of 21 FY *83 - '84 MANAGEMENT BY OBJECTIVES FORM t OIL CONTRACTOR: MIAtAT CAPITAL DEVELOPMENT. INC. OBJECTIVE N To provide debt financing far working capital and fixed assets at below market ra small and medium -^ size businesses willing to relocate into the riot affected areas and MCOI Tarqet Areas. ' JULY � AUG. �SEPT. OCT. LNOV.�LDEC�.� MARCN APR. MAY. J "` ACTIVITIES a) Send outline of requirements to potential loanees. b) Evaluate loan applicants and identify which program( if any can be used to provide them with financinq. c) Process eligi;le loan applications. d) Submit applications to Loan Committee. e) Fund approved applicants. n the beginning to the completion date and dote the beginning and ending dates). LEGEND --On-Going activity (extend a line from Hill Illlllil�fli�iilillV'�iJVIIBIf�illiiilli'IVIIW'IiliV'III�iVIiVliilii�liilfllil!il�l'lill FY 183 - 184 MANAGEMENT BY OBJECTIVES FORM Page 9 of 21 Qy ppNTFACTOR; MY CAPITAL DEVELOPMENT INC. ' OBJECTIVE 7 To provide debt financing for working capital and fixed assets at below market ---19eas. small and medium size businesses willing to relocate into the riot affected areas and M JULY AUG. SEPT, OCT. ��0'd. GEC. JA^l. FEB. MARCH APR. MAY J (ACTIVITIES --�—I a) Send outline of requirements to potential loanees. I ;� b) Evaluate loan applicants and identify which programs) if any can be used to provide them with financinq. c) Process eligi:.le loan applications. :d) Submit applications to Loan Committee. -Fund approved applicants. 3 i M i tia� fi;y extend a line from the beginning to the completion date and date the beginning and ending dates). ;a�c g 9 11 II IID II WIN, (711183 - 6/30/84) DEBT CAPITAL (RLF) MONTH + I JUL AUG SEPT OCT NOV R EC J/1�� FEBFEO , ��,n Z i '},�1Y JU ;E Tol,A No. of Anticipated calls ' 50 ! 75 50 50 I 50 ! 50 50 50 i 75 75 50 i 5r 675 .Clients Interviewed 10 8 7 6 j• 5 i � � 5 10 10 1 5 81 1 Submitted to MCDI Loan Committee 3 ' r--.----- _ 3 3 3 3 3 0! 2' 3 i 2 3 3 3 '--2 4 ' ? Leveraged (000) 100 100 175 c 100 125 100 75 100 150 275 ?7 1,300 Invested OOD (MCDI) 100 400 175 '. 100 125 i 100 . 75 100 150 275 1,300 Jobs Preserved/Created + 15/10 i 10/5 1 20/15 : 15/10. 15/0 12_/1_0_ _.110 10/8 12/10 30 20 1a 9/103_ Rcome: Projected interest -income above 'indicates interest earned on previous months disbursement, but does not accumulate. i:Y 183 - 184 MANAGEMENT BY OBJECTIVES FORM Paga U o£ 21 V-4 M 11 d+ CO�J1'RACiOR; WWI CAPITAL DEVCLOPMENi, INC_. 1 'OBJECTIVE8 To conduct bi-annual seminars to upgrade small entrepreneurs o ortunities and ca abilities. JULY AUG. SEPT. OCT. GEC. JAN. FEB. MARCH APR, MAY NOV. _._ 1CCTISITTIES ----------------- a) Identify topic for program and potential speakers. ,b) Invite speakers. Mail a minimum of 500 invitations to MCDI Loan recipients, communityorganizations, bankers, and 3 other interested parties. ,d) Conduct seminar. 6 • roc .ry; ... `. .' .. ...:3 3 c � IS On -Going ;activity (extend a line from the beginning to the completion date and date the beginning and ending dates). Page FY '83 - '84 MANAGEMENT BY OBJECTIVES FORM 12 of 22 . A CONTRACTOR: MIN4I CAPITAL DEVELOPMENT, INC._ CB,JE'CTIVE '9 To publish hi -monthly business oriented newsletter. -- - 4)n-Goi,ng activity (extend a line from the beginning to the completion date and date the beginning and ending dates). UECE'NII * Change from Quarterly to By -Monthly. 0'� 7 ACTIVITIES i FY 183 - 184 MANAGEMENT BY OBJECTIVES FORM page 13 of 21. C0NTRACTOR: MIAMI CAPITAL DEVELOPMENT, INC._ . =OBJEjCTIVE # 10 To assist the procurement of Small Business Adroinistratio for Small and Medium Sized Businesses. I. JULY I AUG. I SEPT. OCT. NOV. I DEC. IJAN. FEB. MARC N APR. a) Evaluate Loan .-pplicants and identify which program(s) if any can be used to provide them with financing. b) Package approximately 6 eligible Loan Applicants for submission to Commercial Banks for SBA Section 7(a)'Loans. c) Package and submit at least 4 eligible loan applicants for submission to SBA through the 5021503 Programs. 3 + 1:'taID On -,,Going activity (ext end a line from the beginning to the completion date and date the beginning and ending dates). MAY JUNE f m� Wr clients interviewed 2 I j1T:,plications Submitted to SBA I i Private Sector Invested (SBA Guaranteed Deben AICWDI/Equity Jobs Preserved/Created "It ' . I icnsrnmp * (processinq. fee �, ur�-. i Wu1 t�i�L J�.IILUI/lrL � �-b r' �' 5 ., I V ,�•I .��° 4 earl kdm $ttA 502/503 2 ' 2 i 3 i 3 .f 3 i 3 1 q q q _— I ! + 11 1 1 1 1 "2 8 I_ •• i 1 1 1 ' 1 6 1 I i I 75 �.' i i 125 125 125 125 125 700 i08 100 100 I 100 100 i 560 i• 60 � � • 15 I 1 ; 25 25 25 25 � I 25 140 �15/4 I i i 1516 I15/6 1516 15,16_ 15/6 90134 * lmcome Urocessinq fee) ;will not be received until approvals close and debentures sold. 0 .. ry ,n' 8$4 MANAGEMENT BY OBJECTIVES FORM page 16 of 21 CONTRACTOR:MIAMI CAPITAL DEVELOPh1ENT, INC. _ TIVE N it To apply for 2 Urban Development Action Grants (UDAGs) for fixed asset projects OBJEC NOV. I DEC. IJAN. 1 FEB. I MARCH I APR. MAY JUNE ___] ACTIVITIES 40► a. Market Program to at least one major developer per month b• Interact with Community Based Organization on a monthly basis in order to develop potential UDAG projects rc Identify eligible projects d. Package applications ie.. Submit proposals to the City Commission for approval ,d f• Submit approved projects to HUD Note: MCDI will work in cooperation with the City Department of Community Develop- ment and Economic Development to develop, package and implement UDAG projects JULY AUG. I SEPT. OCT. Cq 1 00 'On -Going activity (ex tend a line from the beginning to the completion date acid date the beginning and ending dates). HoNTII Cai,ents Interviewed 4 'Submitted JUL e TOTAL OEC JAN FED I MAR APR MAY JUKE AUG SEPT OCT NOV 2 2 2 6 ' ' 1 2 2 • CONTRACTOR; PiIAP1I CAPITAL DEVELOPMENT INC. l State and private sour ,OB JECTIVE ECTIVE #f 12. To aggressively seek funding and support from Federa DEC. IJAN. I FEB. I MARCH I APR. i�►�Y ACTIVITIES a) Submit proposals to U.S. DJepartment of Health Human Services, Minority Business Development Agency, Florida's Department of Community Affairs Ford Foundation, Local iniatives support Corp. or others in order to procure additional funding for operations and investments. ,gib) Petition the City of Miami for additional funds for the replenishment of the Revolving Loan Fund from the Community Development Block Grant Funds. act Submit amended proposals requesting additional funds :for management and technical assistanceo . and HUD. JULY AUG. I SEPT.. I OCT. NOV. On_Wng ,ac.:ivity (extend a line fro m the beginning to the completion date and date the beginning and ending dates). JUNF. CItY OF MIAMI, FLORIDA INI ER -OFFICE MEMORANDUM TO Howard V. Gary City Manager FROM Charlotte Gallogly ' Director Department of Economic D velopment Background DATE: February 21 , 1984 FILE: SUBJECT AGREEMENT WITH MIAMI CAPITAL DEVE- LOPMENT, INC. FOR $120,000 IN ADMINISTRATIVE FUNDS AND FOR THE REFERENCES MANAGEMENT OF $1 .3 MILLION RLF PROGRAM ENCLOSURES. March 8th Commission Meeting "It is recommended that the City Commission approve the attached resolution waiving the requirement of a formal competitive bidding procedure for the acquisition of services, from Miami Capital Development, Inc. (MCDI), in connection with the management of a $1,300,000•Revolving Loan Fund (RLF) Program ' and in connection with an agreement for the administration ofthis program in the amount of $120,000; further authorizing the City r Manager to execute contractual agreements with MCDI for the management and adminis- tration of said program,with funds to be allocated from the 9th Year Community Development Block Grant Program." Miami Capital Development, Inc. (MCDI) will be entering into its fourth year of operation once the 1983-84 contract is executed. During the past year, the City of Miami provided MCDI with $219,866 of 8th Year Community Development Block Grant (CDBG) funds for administrative expenses associated with the management of a $4.8 million Revolving Loan Fund (RLF) and a $950,000 HUD Discretionary Grant Program. The City was also instrumental in obtaining from the Dade County Community and Economic Development Department funds in the amount of $91,934 for administrative support of MCDI's program. As to this year's level of funding, on February 25, 1983, the Department of Economic Development (DED) received the attached letter (See Attachment 1) from Dr. Claud Anderson, Executive Director of MCDI. In this letter, Dr. Anderson requested that the City provide $450,000 in funding for operating expenses and $2 million for a Revolving Loan Fund (RLF). At the April 6, 1983 City Commission meeting, $220,000 from 9th Year CDBG funds was set aside for MCDI's administrative expenses during 84-291 n rage K& February 21, 1984 the ninth year and $1.2 million from 9th Year DDBO funds was approved for tha purpose of MCDI establishing an RLK program. In addition, on June 6, 1983, the Department of Economic Development received a copy of MCDI's proposed operating budget for FY '83-184. The total budget was for $598,795, an increase of $148,795 from the original amount requested in February 1983 (see Attachment II). DED subsequently analyzed this budget and agreed with MCDI to a final budget of $491,129 (see Attachment III). This budget was approved by MCDI's Board of Directors at their July 15, 1983 meeting. Finally, it should be noted that a Work Plan in a Management By Objectives (MBO) format was also submitted by MCDI (see Attachment IV). Since we only received the Work Plan on November 29, 1983, we anticipate that we will need to modify some of the MBOs and activities. Therefore, we will not finalize these contracts until the MBOs are reviewed and changes made to MCDI's Work Plan that are appropriate. We will be requesting that MCDI modify some of the activities that ne6d to be accomplished for each MBO. Analysis The DED reviewed MCDI's budget request and agreed to a budget in the amount of $491,129. In determining the amount of this budget, the DED analyzed MCDI's projected revenues. Exclusive of the $220,000 that the City planned to contribute for administrative costs, MCDI has projected interest and loan repayment revenues for FY 183-184 of $472,000 (see Attachment V). Included in the projected revenues for FY 183-184 are $5,000 (Insurance Exchange of the Americas service fee) and $40,000 (Dade County Community Development Block Grant funds). In analyzing the recommended budget against the projected revenues, the DED determined that the unfunded portion of MCDI's budget would be $19,129 derived as follows: DED Recommended Budget . . . . . . . . . . . . . . . . . $491,129 MCDI's Projected Revenue . . . . . . . . . . . . . . . 472,000 Total Unfunded Portion of Recommended Budget . . . . . . . . . . . . . . . . . . . . . . . $ 19,129 In addition, we recommended that an additional $5,000 be provided to cover the expenses of conducting an audit of MCDI's 6th, 7th and 8th year CDBG and HUD programs. Thus, the total amount of funding that we recommended for MCDI's adminis- trative exoenseswas $24.129. 84-291 We also recommended that the difference between what was allocated by the Department of Community Development for MCDI's 9th year administrative expenses ($220,000) and the recommended budget amount ($24,129) or the amount of $195,781, be transferred to the $1.2 million Revolving Loan Fund (RLF) that the City would establish. This would have increased the total RLF funds to $1,395,781. At the July 15, 1983 meeting of MCDI's Board of Directors, a motion was passed that rejected the DED's funding recommendation and asked that the City allocate the amount of $120,000 for administrative support of the program. The balance of $100,000 would then be transferred to the $1.2 million RLF, thereby increasing the RLF to $1.3 million. Recommendation Although initially, the DED recommended that MCDI only be provided the amount of $24,129 for administrative expenses during FY '83-184, we have decided to concur with MCDI's request that $120,000 be provided for this purpose. This decision Is based on the fact that MCDI will, for the first time, be establishing a reserve fund that will protect them against major shortfalls in their anticipated operating budget. Furthermore, the DED has made it clear to MCDI's Board of Directors that it is the City's goal to make MCDI a self-sufficient organization by the end of the FY '85-186 contract period. Thus, the $120,000 administrative support that will be provided to MCDI during the 1983-84 fiscal year is with the understanding that the City's contribution in the ensuing two fiscal years will be phased -down to the point that at the conclusion of the 1985-86 fiscal year, MCDI will no longer receive administrative monies from the City. In allocating $120,000 to MCDI for administration, the DED also recommends that the difference between this figure and what was set -aside by the Department of Community Development for MCDI's 9th year administrative expenses ($220,000) or the amount of $100,000 be transferred to the $1.2 million RLF that the City will establish. This will increase the total RLF funds to $1,300,000. It should be noted that the City has advised MCDI of the importance of providing a business loan to Super Save Market Inc. (grocery store and anchor tenant in the Overtown Shopping Center). This shopping center represents one of the most important economic development projects that the City of Miami has ever undertaken since ten (10) new minority businesses will be established and over 100 jobs will be created. Thus, a clause has been inserted in the MCDI $1.3 million RLF contract, which earmarks $260,000 of these funds for a business loan to this supermarket. The terms and conditions for this particular loan will be established by the City and MCDI will be required to service this loan, as well as to include it in its loan 84-291 1' 1 `a y! F I } 1: t y if � t � 1 �S '{1 176wa rd V , to y Page #4 February V . 1984 mom 0 MCDI will be responsible for complying with the contractual policies and procedures of the Department of Economic Development in implementing the administrative contract and the Revolving Loan Fund contract. Finally, two major matters related to MCDI should be understood at this point. First, the specialized expertise of MCDI is unique and constitutes the only reasonable source of supply for the services required in the type of financial assistance program that is being proposed. This is evidenced by the fact that since 1980, MCDI has been the only agency that the City of Miami has contracted with, for the purposes of administering and managing federal financial assistance programs to businesses located in the City of Miami. Secondly, the City of Miami is desirous of evaluating the use, for the first time, of U.S. Department of HUD Community Development Block Grant (Ninth Year) Funds for the purposes of providing the aformentioned financial assistance program. The DED feels that the City of Miami will be able to properly evaluate this proposed RLF program through the MCDI, which has developed and acquired the expertise in admi- nistering and managing such programs as a Federal Economic Development Administra- tion $4.8 million Revolving Loan Fund Program and a $950,000 U.S. Department of HUD Loan Grant Program. In consideration of the above, the DED recommends the adoption of the herein resolution. APPROVED AND ADOPTED AS THE FINDINGS OF THE UNDERSIGNED Howard V. Gary, City Manager 84-291 84-291 t d y ei ARTICLE _ i I? i.1 Contract Provisions aF ARTICLE II 2.1 City Authorization 2.2 Obligation of Contractor 2.3 Obligation of City I 2.4 Contract Modification , 2.5 Non-Delegability, 2.6 Board of Directors 2.7 The Executive Committee 2.8 Compliance With Federal, State anca1�"� Laws �: 2.9 Successors and Assigns t ARTICLE III 3.1 Work Program Specifications 3.2 Loan Program Specifications 3.3 Marketing of Work Program ARTICLE IV 4.1 Budget Summary u 4.2 Method of Funding 4.3 Financial Accountability 8 -~ 4.4 Retention of Records 8 4.5 Reimbursement -Timely Submission 8 4.6 Salaries, Fringe Benefits, Job Descriptions 9 4.7 Bonding and Insurance 9 4.8 Reports and Evaluations 10 ARTICLE V 5.1 Project Publicity 11 , 5.2 Equal opportunity 11 5.3 Conflict of Interest 12 5.4 Indemnification 12 5.5 Level of Service 12 5.6 Disclosure of Funds 13 5.7 Purchasing and Inventory 14 5.8 Final E::penditure Report 15 5.9 Amendments 15 5.10 Ownersliip of Documents 16 5.11 Award of Agreement 16 5.12 Leveraging 17 '3 ARTICLE VI Ai 'r 6.1 General Assurances and Certifications 17 6.2 Opportunities for Small & Minority Buss.- 15 6.3 nesses Citizen Participation 1� 84-291 HM= VIl 84--291 � I i 5 I h I k P. V II 7.1. Total Funding 7,2 automatic Renewal Provisions 7,3 Time of Performance 7.4 Recapture of Funds 20 7,5 Title To Assets 7,6 Default Provisions 21 ARTICLE VIII 8.1 Termination Clause 8.2 Availability of Federal Funds ARTICLE IX 9.1 General Provisions I 5 r i ARTICLE X 10.1 Signatories it F ' i ! { I ➢ a � ! 1 1L ! � � i I "� r r< ! 1 r 44 x , f 1 k I i tt i' s s 4 ra f I 84•-291 r CITY OF MIAMI, FLORIDA MIAMI CAPITAL DEVELOPMENT, INC. (MCDt) THIS ACR99NIENT, entered into by and between the City of Miami, e political subdivision of the State of Florida, hereinafter referred to as the "City", and Miami Capital Development, Inc., hereinafter referred to as'"Contractor", a corporate body fully organized and existing and by virtue of the laws of the State of Florida as a non-profit corporation, having its principal. office at 100 N. Biscayne Boulevard, 9th Floor, Miami, Florida# 33132, this day of , 1984, for the period beginning July 1, 1983, and ending June 30, 1984. Vendor No. Funding Source: U.S. Depart- ment of Housing & Urban Development (Community Develop- ment Block Grant) . In consideration of the covenants and agreements hereinafter set forth, —the parties hereto agree: ARTICLE I As a necessary part of this Agreement, the Contractor agrees to provide the City with the following standard requirements. 1.1 CONTRACT PROVISIONS 1. Contractor's Corporate Seal (to be affixed to Sianatonr Page) . 2. Copy of Contractor's Charter, Articles of Incorporation and By-laws. 3. List of present principal governing board officers and members of the board (names, addresses and telephone numbers). 4. List of key staff persons, with their titles, who will carry out this program. 5. Job descriptions S resumes for all positions involved with this contract. 6. Copy of personnel policies. 7. Copy of Contractor's current fidelity bond (applicable for all persons who are authorized to receive and disburse funds under this contract). 84-291 4 i f t f 1 Prdbf of Worker's Compensation Insurance, : Completion of Authorized Representative Statement (on form supplied by the City). i, Completion of Statement of Accounting System (on form supplied by the City). 11, CPA letter verifying the Contractor's Accounting System as containing internal controls which are adequate to safeguard the Organization's assets. 12, Completion of Contractor's Total Actual and Projected Funds Disclosure (on form supplied by the City). 13. Completion of Staff Salaries Schedule (on form supplied by the City). 14. Loan Production Schedule (on form supplied by the city). 15. Final Expenditures Report (to be submitted to the City on an approved form no later than 30 days after the expiration of this Agreement). 16. Certified Independent Audit (to be submitted to the City no later than 120 days after the expiration of this Agreement). 17. Work Program (including Guidelines for the Revolving Loan Fund). " ---18. Corporate Resolution authorizing execution of this • contract. All of these items are subject to the approval of the Department of Economic Development. ARTICLE II GENERAL OBLIGATIONS 2.1 2.2 CITY AUTHORIZATION For the purpose of this contract the City of Miami ' Department of Economic Development (D.E.D.) will act on behalf of the City in the fiscal, programmatic monitor- ing and control of this contract. OBLIGATION OF CONTRACTOR The Contractor agrees and understands that this Agreement should be completely executed within sixty (60) days of appropriation. Failure to comply gives the City the right.to withdraw and re -appropriate funds. The Contractor 2 84�--291 2.3 F ' l h agrees to carry out the project as prescribed ift it§ attached Work Program (khcluding Guidelines for the Revolving Loan Fund) in a lawful, satisfactory and proper manner, in accordance with the written policies and procedures, and requirements as prescribed in this Agreement, as set forth by the United States Secretary. • of Treasury, and the City of Miami Departments of Com mu-- pity Development and Economic Development, and all other state and local laws. The Contractor shall not perform r in a way inconsistent with the terms of the Work Plan (including Guidelines for the Revolving Loan Fund), except as authorized in writing by the City's Department of Economic Development and approved by the City Manager. OBLIGATION OF CITY To provide funds for the implementation of a Revolving Loan Fund (RLF) as contemplated in the attached work pro- gram, and to provide funds not to exceed $120,000 for the administration of said fund as well as any and all funds previously or subsequently received by MCDI from the $1,300,000 RLF and $960,000 HUD RLF. CONTRACT 140DIFICATION The City or Contractor may, from time to time, request changes in the scope of services to be performed hereunder. Such changes, including an increase or decrease in the amount of Contractor compensation or in the Work Program, which are mutually agreed upon by and between the City and the Contractor, must be incorporated in written amendments to this Agreement, following approval thereof i by the City Manager and City Commission. 84-291 2. b RQ7RtUI_.tEGA81t-1 TY - It is understood and agreed that the obligations under- taken by the Contractor pursuant to this Agreement shall not be delegated to any other person or firm unless the City shall first consent in writing to the performance or such services or any part thereof by another person or firm. BOARD OF DIRECTORS The Contractor's Board of Directors, in accordance with its recently revised Articles of Incorporation, shall contain a majority members.iip who represents the civic and business sectors of Metro -Miami private sector. In accordance with the Bylaws -of the Contractor, the Board of Directors and Executive Committee shall each meet - on a bi-monthly bA is, to set policy and renew the 2.7 2.8 implementation of policy. THE EXECUTIVE COMMITTEE The Board of Directors shall establish an Executive Committee to carry on the affairs of the Corporation on a day-to-day basis. COMPLIANCE WITH FEDERAL, STATE AND LOCAL LAWS Both parties shall comply with all applicable laws, ordinances, and codes of Federal, State, and local governments. Specifically, the Contractor agrees to comply with the housing and Community Development Acts c)f 1974 and 1977, Section log with Executive Order 11246 and 11063; and with Section 3 of the Housin and Urban Develo ment Act of 1968 (Section 570, 303). = 4! 84-291 A description or the Contractor's Work Program (including the Guidelines for the Revolving Loan Fund) is attached and hereby incorporated and made part of this Agreement. The Work Program may be modified at any time by an affirma- tive vote of the City Commission. 9 LOAN PROGRAM SPECIFICATIONS In administering the Loan Program that is contained in and constitutes a part of the Contractor's Work Program Specifications, the Contractor agrees to the following covenants and conditions: (1) To implement the Guidelines for the Revolving Loan Fund that are attached and hereby incorporated and made part of this Agreement. In implementing these guidelines, it is understood that only businesses within the prescribed com.nunity develop- ment target areas of the City of Miami limits will be eligible to receive loans under this contract from the Revolving Loan Fund. In addition, the guidelines must as- sure that approved loans will collectively generate one (1 job for every $5,000 to $15,000. (2) (3) To disburse l.uan funds within thirty (30) days after or as expeditiously as possible after the Loan Commit- tee has approved the Loan. To differentiate between "small" and "large" loans by establishing separate application procedures for each. For the purposes of this Agreement, "small" loans are defined as loans not exceeding the maximum sum of $50,000.00 and "Large" loans are defined as exceeding the minimum slim, of $50, 000. 01. (4) To establish a Vyork Out Conunittee to formulate policy pertaining to past due loans. This policy would encompass the establishment o, collection, extension, and foreclosure procedures for defaulted loans. 84-291 the Contractor shall have a program targeted at key The total Contractor 1983/1984 budget summary attached hereto, as Attachment IA and is hereby incorporated and made part of this Agreement. .2 METHOD OF FUNDING (1) Revolving Loan Fund: The Contractor agrees to drawdown loan funds when there is a scheduled loan closing. Requests for drawdowns should be submitted within ten working days before the scheduled date of loan closings in order to assure that the funds are available. If for any reason the loan closing does not occur, the Contractor must provide the W6W 84-291 t 3 t Y } f I S `City with a check for the exact amount of the advanced drawdown within 72 hours less all out-of-pocket costs for verifiable expenses incurred in processing the loan application, i.e. legal fees and credit investigations. Contractor agrees that no loan closings will occur un- less the City is present. (2) Administrative Expense: The City agrees to reimburse Contractor for specific line -item administrative costs, incurred in its 1983/ 1984 budget from July 1, 1983 to June 30, 1984 which will not exceed $120,000.00. Contractor will provide the City with invoices, cancelled checks or any other proof of administrative expense. Such reimbursement requests shall contain a statement declaring and affirming that all disbursements were made in accordance with the approved budget. All documentation in support of such -request is made and all invoices should have been paid by the Contractor prior to submission. All reimbursements must be in line item form and be in accord with the Agreement. All expenditures must be verified by original invoice with a copy of the cancelled check which was used to pay the specific invoice. In case that an invoice is paid by various funding sources, a copy of the invoice may be submitted but must indicate the exact amount paid by various funding sources equaling the total of the invoice. Request for budget line -item changes are allowable, with prior review and approval by the City. Requests for advance payments shall be submitted, including the amount requested and a justi- fication in writing to DED for review and approval. 84-291 4.4 4.5 payments, or increased for underpayments on preceding invoices or vouchers or to repay any amounts. The City will monitor the financial and programmatic records of the Contractor on a quarterly basis. RETENTION OF RECORDS The Contractor agrees to retain all financial records, supporting documents, statistical records, and all other records, pertinent to this Agreement, for a period of three (3) years. The retention period starts from the date of the submission of the final expenditure report. Records for non -expendable property acquired with funds under the Agreement, shall be retained for a period of three (3) years after its final disposition. Said records shall be retained beyond the three (3) years period if the audit findings have not been resolved. REIMBURSEMENT - TIMELY SUBMISSION Requests for payment shall be made on a monthly basis. Reimbursement requests for expenditures incurred during ' the life of this Agreement shall not be honored unless received by the City within forty-five (45) days following the expiration date. In addition, the,City shall make - reimbursement to the Contractor within seven (7) working days after receipt of reimbursement package. -8- 84--29JL Y -IiE5, FRINGE $ENEFITS, JOB DESCRIpTIONS To be eligible for reimbursement for personnel costs, the Contractor shall submit to the City for approval, in accordance with Department of Labor guidelines, a detailed statement of the personnel policies of the Con�ractor. These personnel policies will include, but not be limited to, pay schedules, fringe benefits, resumes for contract staff, method used to compute vacations and sick time, working hours, office procedures, paid holidays, computation of wages, job descriptions to include qualifications for job, an affirmative action plan, an equal employment opportunity statement, disci- plinary procedures and method, format for and frequency of employee evaluations. The personnel policies to be followed under this Agreement shall be those used by the Contractor in the ordinary course of its business, providing, however, such policies conform to the pro- visions of the Intergovernmental Act of 1970 (Public Law 91-648 effective January 5, 1971). BONDING AND INSURANCE The Contractor shall maintain during the term of this Agreement, the insurance and bonds specified below: a) b) c) Insurance coverages should reflect sound business practices as determined by the Risk Management Division of the City of Miami. The City shall be named as an additional Insured. Prior to the disbursement of funds to the Contractor, the City shall receive evidence that all persons handling funds received or disbursed under this Agreement are covered by Fidelity Insurance in an amount consistent with sound fiscal practice. ' The Contractor shall furnish certificates of insurance and bonding to the City prior to commen- cing any activity under the Agreement. Said certificates shall clearly indicate the Contractor is in strict compliance with provision of this Article, Compliance With the f6rdq6I.ftq requifeffientt shall not relieve the Contractor of its liability and obliga- tions under this Section or render any portion of this Agreement. REPORTS AND EVALUATIONS The City shall cooperate with the Contractor in the conduct of activities delegated under this Agreement as reasonably requested. The Contractor agrees to submit to the City such reports as may be required by the Secre- tary of the Treasury and/or the Secretary of Labor and/or Departments of Community Development and Economic Development, along with reports to the City on the Work Program and reports comparing loans approved, closed and disbursed to the planned Loan Production schedule. The Contractor also agrees to prepare, retain and permit the City, in conjunction with Federal and State officials, to inspect as it deems necessary for grant purposes, re- cords that may be relevant to Federal and State grants or directives (i.e., EDA, RLF, HUD P.LF, and CD RLF). Contractor will transmit to the City, in writing, a loan evaluation report to be completed prior to the end of the contract term covering all City and RLF contract activities. The format for this report will be determined by the City. At the request of the City, Contractor will transmit to the City written statements of Contractor's official policy on specified issues relating to Contractor's activities. The Contractor further agrees that the City may carry out quarterly programmatic and fiscal monitoring activities by the City sta.ff and will effectively ensure the coopera- tion of the Contractor's employees and board members in such efforts. All reports and evaluations either M10- 84-291 submitted to the City, or acquired through on -going Monitoring and evaluation will be thoroughly reviewed by the City. Any material discrepancies, incomplete or inadequate information either received on a monthly basis or through monitoring and evaluation, will give the City just the legal cause to terminate this Agreement at any time thereafter, as hereinafter provided in Section The Contractor must abide by affirmative action regulations in informing residents.of the geographical area to be - served hereunder, of the services to be offered by uti- lizing any available means for advertisement, as neces- sary for recruitment and outreach. 84-291L CONFLICT OF INTEREST No official or employee Of the Contractor may be acttitted clirectly or indirectly to any share or part of this contract or to any benefits to arise from the same, nor own or acquire any personal interest in any property, contract or proposed contract which would conflict with or relate to the performance, their duties or responsi- bilities under this contract. if any such person presently or in the future acquires, owns or controls any such share, benefit, or personal interest, he shall immediately disclose such interest to the City and other appropriate agencies. Upon such disclosure, such person shall not continue his participation unless it is determined by the City that his participation is not contrary to public interest. The Contractor will comply with all Federal, +. State and local conflict of interest laws and requirements. SA INDEMNIFICATION The Contractor shall indemnify and save the City harmless from and against any and all claims, liabilities, losses, and causes of action which may arise out of Contractor's activities under this Agreement, including all other acts or omissions to act on the part of the Contractors or any of them, including any person acting for or on his or their behalf, and, from and against any orders, judg- ments or decrees which may be entered and from and against all costs attorney's fees expenses and liabilities incurred in the defense of any such claims, or in the investigation thereof. In addition, the Contractor will hold the City harmless and will indemnify the City for funds which the City is obligated to refund the Federal government arising out of the conduct of activities and administration of the Agreement. _i2- 84--291 activities and expenditures by the Contractor, in exis- tence prior to the initiation of services hereunder, shall be continued and not be reduced in any way as a result of this Agreement except for reductions unrela- ted to the provisions or purposes herein stated. It is further understood and agreed that the program funded through this Agreement will not result in the displa- cement of employed workers, impair existing contracts for services, or result in the substitution of funds allocated under this Agreement for other funds in connection with work which would have been performed j< even in the absence of this Agreement. 2` 84--291 activities and expenditures by the Contractor, in exis- tence prior to the initiation of services hereunder, shall be continued and not be reduced in any way as a result of this Agreement except for reductions unrela- ted to the provisions or purposes herein stated. It is further understood and agreed that the program funded through this Agreement will not result in the displa- cement of employed workers, impair existing contracts for services, or result in the substitution of funds allocated under this Agreement for other funds in connection with work which would have been performed even in the absence of this Agreement. 5.6 DISCLOSURE OF FUNDS The Contractor shall disclose all sources (Public and Private) and amounts of funds reflecting the total budget whether they be real or in -kind at the commencement of the contract period, as well as any changes in the amount of funds through program income or other sources received during the terms of agreement, within thirty (30) days of such changes. Examples of in -kind func.s to include free rent, labor, office equipment, etc. 1 3 : 2 � t i b 84-291 1 pURCHASINC AND INVtNTORY The Contractor agrees to use its best efforts to dbtairi all supplies and equipment for use under this Agreement 84-291 t 4 J 1 i } h S 4i 1 4 4 t The Contractor shall be subject to and cofhply With the City's current Minority Procurement Program. The Contractor, in the procurement of supplies, equipment, construction or service to implement this project, shall 5.9 _make a positive effort to utilize small business and minority owned business sources of supplies and services, and provide these sources the maximum feasible opportunity to compete for contracts to be performed pursuant to this Agreement. To the maximum extent feasible, these small business and minority owned business sources shall be located in or owned by residents of the Community Development Target Area(s) designated by the City of Miami in the Community Development Grant application approved by the U.S. Department of Housing and Urban Development. FINAL EY.PENDITURL REPORT A final budgetary report shall be submitted to the City within thirty (30) days after the expiration of the contract period. This report should reflect actual expenditures, by line -items, versus proposed expenditures submitted at the beginning of the Contract year. All persons employed and paid pursuant to this Agreement should be listed by name, title, Social Security number, date hired or terminated, ethnic background, and total salary reflecting both City and other funding sources. AMENDMENTS The City and the Contractor may, in their discretion, amend this Agreement, to conform with any contingencies which may require such amendment. Amendments, if requi- red, shall be incorporated, in writing, to this Agreement upon approval and concr rrence of the City and the Contractor. -15- 84-291 this Agreement. To the maximum extent feasible, these small business and minority owned business sources shall be located in or owned by residents of the Community Development Target Area(s) designated by the City of Miami in the Community Development Grant application approved by the U.S. Department of Housing and Urban Development. -- - 5.8 FINAL EXPENDITURZ REPORT A final budgetary report shall be submitted to the City within thirty (30) days after the -xpiration of the contract period. This report should reflect actual expenditures, by line -items, versus proposed expenditures submitted at the beginning of the Contract year. All persons employed and paid pursuant to this Agreement should be listed by name, title, Social Security number, date hired or terminated, ethnic background, and total salary reflecting both City and other funding sources. AMENDMENTS The City and the Contractor may, in their discretion, amend this Agreement, to conform with any contingencies which may require such amendment. Amendments, if requi- red, shall be incorporated, in writing, to this Agreement upon approval and conct•rrence of the City and the Contractor. -15- 84-291 - 16 -- 84--291L (trade County Code, Metion 2-11.1) and the Florida Statutes, and agree that they will fully comply in all respects with the terms of said lams. S.12 LEVERAGING The Contractor agrees to seek additional supportive or replacement funding from at lease three other funding sources. This will allow, to the greatest extent pos- sible, the leveraging of Community Development Block Grant funds. Proposals to other agencies will be made in writing and a copy of such provided to DED. The Contractor further agrees to the provision that cash loan dollars under this contract must be matched on a one to one basis with a private lending or equity source. ARTICLE VI 6.1 GENERAL ASSURANCES AND CERTIFICATIONS THE CONTRACTOR ASSURES AND CERTIFIES THAT: 1) It possesses legal authority to enter into this Agreement; a resolution, motion or similar action has been duly adopted or passed as an official act of the Contr..ictor':3 governing body, authorizing the execution of the Agreement, including all under- standings and assurances contained herein, and directing and authorizing the person identified as the official representative of the Contractor to act in connection with the Agreement and to provide such additional information as may be required. y -2)• It will comply with Title VI of the Civil Rights Act of 1964 (P.L. 88-352 78 STAT 241), and in accordance with Title VI of the Act, no person in the United States shall on the grounds of race, color, sex, national origin, political affiliation or beliefs (Section 703[l) and 712), be excluded from partici- pation in, be denied the benefits of, or be other- wise subjected to discrimination under any program or activity for which the Contractor receives Federal financial assistance, and the Contractor will immediately take any measures necessary to effectuate this assurance. -17- 84-291 L 1Y n i 2 n` x' � s- 2 I • It will comply with the provisions of the Hatch Act which limits the political activity of employees. 4) It will comply with the requirement that no program under this Agreement shall involve political acti- Vities (Section 710). 5) it will establish safeguards to prohibit employees from using their positions for a purpose that is or gives the appearance of being motivated by desire for private gain for themselves or others, particu- laxly those with whom they have family, business or other ties (Section 702[a]). 6) Participants or employees in the program found pur- suant to this Agreement, will not be employed on the construction, operation or maintenance of that part of any facility which is used for religious instruction or worship (Section 703131). 7) Appropriate standards for health and safety in work and training situations will be maintained (Section 703[5]). 8) Perse-is employed in public service jobs under this Agreement shall be paid wages which shall not be lower than whicicever is the highest of (a) the minimum wage which should be applicable to the employer under the Fair Labor Standard Act of 1938, if Section 6 (a) (1) of such title applies to the participant and if he were not exempt under Section 13 thereof; (b) the State or local minimum wage for - the most nearly comparable covered employment, or (c) the prevailing rates of pay for persons employed in similar public occupations by the same employer (Section 208[a) [21). 9) It will comply with the regulations and requirements of the Department of Management and Budget Circular A-1021, "Uniform Administration Requirements for Grants -in -Aid to State and Local Governments" and Federal Management Circular 74-4, "Principles for Determining Costs Applicable to Grants and Contracts With State and Local Governments." .� OPPORTU11ITIES FOR SMALL A11JD MINORITY BUSINESSES The Contractor shall make a positive effort to utilize small business and minority owned business sources of ..-supplies and services, and provide these sources the maximum feasible opportunity to compete for opportuni- ties to be performed pursuant to this Agreement. To the maximum extent feasible, these small business and ' minority owned business sources shall be located in z, or owned by residents of the Community Development Target Area(s) designated by the City of Miami in the 2 Community Development Grant Application approved by the U.S. Department of Housing and Urban Development. -18- 84-291 Oil 0 TIZEN PARTICIPATION 6.4 The Contractor shall cooperate with the Office of Commu- pity Development in informing the appropriate Community Development Citizen Participation Structure(s) including the appropriate Target Area Co:--mittee(s) of the activities of the Contractor in carrying out the provisions of this Agreement. ANTI -KICKBACK PROVISION The Contractor will comply with the Anti -Kickback Act, Title 18, USC Section 874, and provisions of the Federal Labor Standards, Title 29. ARTICLE VII FUNDING METHOD 7.1 TOTAL FUNDING (1) Revolving Loan Fund: The total funding for the Revolving Loan Fund shall not exceed the maximum sum of $1,300,000.00. The (2) contractor further agrees that it shall not expend these funds as administrative expenses. Administrative Expense: The total compensation for this contract shall not exceed $120,000.00 for Contractor's 1983-84 budget. AUTOMATIC RENEWAL PROVISIONS If the Contractor is in good standing, not in default under the terms of this Agreement, and the Contractor and the City have successfully renegotiated the compensation and condi- tions for the Contractor's administrative expenses at the 84-291. 7.3 7.4 7.5 _4 i ddneecutive 1 year periods up to a maximum of z years, unless the City gives notice to the Contractor that it will not Seek renewal 30 days prior to the expiration date of the then existing term. TIME OF PERFORMANCE This Agreement shall become effective upon execution of this Agreement by the City Manager and shall be under- taken and completed in light of purpose of this Agree- ment, all services required hereunder shall be completed by June 30, 1984. RECAPTURE OF FUNDS The City shall reserve the right to recapture all funds and assets when the Contractor fails to comply with the terms of this Agreement or refuses to accept conditions imposed by the City or by the U.S. Department of Housing and Urban Development, as provided in Section 7.6. TITLE TO ASSETS Funds paid under this Agreement are paid to the Contrac- tor for the purposes set forth in this Agreement and shall be used solely therefore. conditions apply thereto: The following convenants and 1) Whenever money drawndown and intended to be loaned or disbursed pursuant to a loan/grant program approved under this Agreement is not so loaned or disbursed, it must be returned to the City within 72 hours. 2) When loans are repaid by the borrower, funds may be used solely for new loan agreements unless approved for other purposes by the City.Departments of Commu- nity and Econcmic Development. 3) Neither principal or interest, in the Contractor's $1,300,000 RLF Program, the $960,000 IUD Grant and any and all other monies provided or issued to MCDI by the City, whether currently in possession of the Con- tractor or to be provided in the future by the City, can be used for administrative purposes. t t 3 t r 4) Upon termination and/or final disposition of assets, interest on loans made by the Contractor and acctu- ing to the Contractor shall be deemed to be part of the funds allocated to the Contractor by the City and shall belong to the City. The Contractor is only to request funds to pay a loan closing after it has a scheduled firm date for a loan closing and only three days prior to the date of the loan closing. DEFAULT PROVISIONS 3) Funds may be withheld by the City for any of the fol- lowing reasons: a) if the contractor makes any substantial misre- presentation of any material fact in any of its periodic reports. b) If there is litigation pending with respect to the performance of the Contractor which adversely affects the operation of the Contractor. c) if the Contractor is in substantial breach of any of the provisions of its Agreement with the City. d) if reports as required by the City have not been submitted within the time required or reasonable cause shown for such delay. e) Failure, for any reason, of the Contractor to fulfill in a timely and proper manner its obli- gations under this Agreement, including substantial compliance with the approved 'Work Program and attached conditions, the budget and such directives such as many become generally applicable at any time; submission by the Contrac- tor to the City, of reports that are substantially incorrect in any material; and ineffective or improper use of funds provided under this Agreement. Upon dissolution of the Contractor, termination of this agreement by either party, or its inability to materially comply with the approved work program, all of its rights, title and interest in said monies and their produce and all assets of the Contractor re- lated to the $1,300,000 RLF program, the $960,000 HUD Grant and any and all other monies provided or issued to MCDI by the City, whether currently in possession of the Contractor or to be provided in the future by the City, shall immediatley accrue to the City of Miami and shall be transferred within five (5) days by the Contractor to the City of Miami. This would include unused or unemcumbered funds deposited with any lending institution, which shall also be returned to the City. Any and all program income and interest on loans made by Contractor and accruing to Contractor shall be deemed to be part of the funds allocated to Contractor by the City. �21r 84-291 gent upon the availability of Federal funds and in the event that those funds are withdrawn or reduced, this Agreement shall be modified so as to reflect the changes in the availability of the funds. In the event that the Agreement must be terminated due to the unavailability of Federal funds, the Contractor shall be entitled only to recover the actual amount of administrative costs incurred -up to the date of termination, which in no event shall exceed the amount allocated for administrative costs under the Agreement. GENERAL PROVISIONS 1) ARTICLE IX The parties hereto agree that this Agreement shall be construed and enforced according to the laws, statutes and case laws of the State of Florida. 2 84-291 ;Y L( t � 3 1 E J S j Fe p, lit ' EMINATION =USE 1) Either party by giving written notice specifying the effective date (which shall not be less than thirty days of the date of receipt of such written notice), may terminate this agreement in whole or in part for cause which shall include failure for any mason, of the non -terminating party to fulfill in a timely and proper manner its obligation under this agree- ment . -i. 1, i3rt 2) Further, it is mutually agreed that the Contractor shall immediately, upon demand by the City, cease and terminate any and all activities including but not limited to divesting itself and any subsidiary(s) of specific assets and/or projects and that upon demand of the City any and all accumulations thereon, shall be delivered to the City and become the sole property of the City. AVAILABILITY OF FEDERAL FUNDS All the obligations under this Agreement shall be contin- gent upon the availability of Federal funds and in the event that those funds are withdrawn or reduced, this Agreement shall be modified so as to reflect the changes in the availability of the funds. In the event that the Agreement must be terminated due to the unavailability of Federal funds, the Contractor shall be entitled only to recover the actual amount of administrative costs incurred -up to the date of termination, which { in no event shall exceed the amount allocated for administrative costs under the Agreement. ARTICLE IX GENERAL PROVISIONS 1) The parties hereto agree that this Agreement shall be construed and enforced according to the laws, statUtea and case laws of the State of Florida, �22W 84-291 MPIT-Ga. ONGIE,�CITY CLERK ATTEST: BY HOWTRD V. 6KRY; -CITY MANAG"M CONTRACTOR: jMIAMI CAPITAL DEVELOPMENT, INC. SECRETARY PRESIDENT APPROVED AS TO FORM AND CORRECTNESS: (SEAL) —24- 84-291 POSITION TITLE EXECUTIVE DIRECTOR CITYWIDE COORDINATOR MIAMI CANIIAL UVLLOPMENT, INC. s:•�t} r{ITY- OF. tjjAMI 1983181'�pffl �ISTRATIVE BUDGET' ` F J�� ~ { , .� . �_� �. , r•,, ' ....... • . BUDGET AMOUNT _ NAME ' ; F f' } '' r �i�� ANNUAL`SALARY ` ;ff CLAUQ ANDERSON _� 'i 55,000 13,200 PAULTTNE�WALTON ' 26�500' ic=' 26,500 LASS I STA'JT TO DIRECTOR ROBERT' BLOUNT 36;000 8,640 s Col 1 ections Accountin ' ' " *"''` K j ` t ` .q r r, f Progra 9 r. �ts�' � �4rt ►; �.� .,, a" �w 4MI... 'A 8,400 ALFREDVIZ jASSISTANT TO DIRECTOR GUIRRE` '7s,r L �� ► .,� Community Affairss,� �; +`, W. ..• 1t: 6,tF� ,'Ifi..► •w � .�. i"•�•. ''' 20 .. } . 3r.:9pQLORENZ MMON CHIEF FINANCIAL ANALYST ,. = .�. 20,330 r 4,,879 ADMINISTRATIVE ASSISTANT MADGE WARREN (LOAN CREDIT SPECIALIST .LUIS' VANEGeeSt a'•r 21 000 • 040, ,SECRETARY I TERESITA}GARCIA .�'' 139506 !r'� LA JOYCEiBRO%4N-WORD 14 000 .�: �. 7,000 SECRETARY II ►� ,7;�r,►:-�,-,�',1 h•S►zt ,{ �.:�r��i'.?r: r�� SE"IIOR LENDING ADMINISTRATORROBERT•°OUI•I�` ., �• 33;00,920 0 �^ . $287,330 92,739 x.: .- TOTAL SALARIES 6,306 FICA TAXES 20,955 RENT A�. }:120, 000 A. TOTAL BUDGET ,; ;:, • F f ,49 + : Alva ,j i--•/7] . r., p. .fi r �•'1. , i• ��ij'T �•'�• - N BB `• I ZIt •j'' , _,.., n .._,•.._„, .......ti...s.�;,, ,_-.,.,_. ,. ..:�•. . _.... ..sue_.•... ..' ..�.. - ... - T•7. During the February 2, 1983, Executive Committee Meting, You ranting indicated that your office was currently in the process of r.1 for budget projections for economic activities that hIiiamiyCapital fiscal year 1983/84. This Development. Inc. and Miami Citpgide, Inc. play a pivotal role in se two corporations portend significant economic such plans because the -size businesses in Miami's lthe by development for small and medium and Hon -minority communities. Especially, if they are given the tine, resources and proper support. uesting - As Executive Director of both CDI and in the MC'nth Year Communityg0evelopment • v. your`' 'consideration and support Funding Cycle for a budget that provides $450,000 for operating and $2 pillion for a replenishment makefitthe possiblRevolving forLoan thisFunds. organizationato budget and loan funds wouera goals and community loan address and fulfill operation needs, program demands. This budget request is based, not upon a consultant's philosophical view "about nhdai C`.IIDareacollectively achieoriginally ded vingf oa,nd but the reality o f ti•jhat h1CDI a their potential . ts Considering the social,,civi�crandand reflectingitical non the cnumb-r and quality on t?,CDI over the last t.ro y�a the organization is to 52 coTmended of " ,ist: loans" that it Eras made, rather tf;an condemned. 1'>> °larl doubr,thCDlastss�i emont Sv.rorFunctioning economic development, part y Stith a li:nit4d staff, the tt•jo corporations have revieti•red and evaluated more than 300 loans, approved more t"an 100, totalling more -than $16 million; retained rda�ore�'t�ant$1n57noll�on; Icaned dollars intmore direet than $4 million and generated and indirect tax benefits to the City. Soo Northpj3w nsBou1*"re.?:hFloor/bWRO WO33313Vill.t3073SSM1TO1"%=- tJ14r'9 84-291 %figs Char Lott i� 11 g1 With MV-11 having been activated to assist small and medium sized, profitable businesses with long term, low cost fixed asset finanting, this organization is now serving all aspects of the community. MCWI is the certified 503 development company for the City of MMiami and since it was activated it has. already approved four loans. MCWI, with z new staff, should do the City proud rith creative forms of financing such as 503, CD floats, UDAGs, etc. the national Develop„ient Council had projected that 11CUT could only be able to approve one 503 by this time_ Instead, we have approved four and hope to approve m�iyhe two a month. Unfortunately, all of the achievements of E,CDI and 14CVJr are not enough, due primarily to the magnitude of the economic deprivation in Miami's Slack communities. Earl Graves, Editor and Publisher of Black Enterprise Magazine pointed out last month that not one of America's top one hundred Black business entities are located in Florida. This, of course, is no surprise to anyone who is either Black or involved in economic development. Our files are filled with reports and studies that described ill-fated attempts to mainstream Black businessmen into the commercial enterprises of this count-y. I am confident that h,COI stands on the threshold of changing the Black _bu`sfness picture in Miami. Our new administration, program initiatives and loan policies will make a difference by focusing on ?Minority ' acquisitions and franchises. Wherein records indicate that 8 out of 10 Minority start-ups fail; 8 out of 10 franchises and acquisitions succeed. .Currently we have several major acquisitions and franchises loans pending. Additionally, I am very optimistic about our joint ventures in the Pantry Pride and Basic Food Store efforts. Therefore, programaticaliy and loan fund wise, our major emphasis for the FY 1983184 will be in acquisitions and franchises, particularly in High gro:,rth industries such as manufacturing, processing, warehousing, distributorships and teleco.mmnunications. To magnify our Co; :r,unity involvement and sensibility, we hope to work with the City in doing cluster site developments, industrial incubations, real estate deals, job/business development, etc. If MCDI and MCUI i•rere appropriately supported they can continue to serve as the major economic development vehicle in this area. But,-th;y dust have an operating budget of $450,000. A line item breaE:do�;n will be provided at contract time, explaining and justifying the request. It is also imperative that the Revolving Loan Fund be replenished, because at this time, we have approximately $1,250,000 re;Taining in E;DA and HUD funds. Of this amount, all but approximately $250,000 is conceptually and verbally committed. Routine loans will probably exi;.iust the balance of our funds in flay or early June. A $2 million replenishment will assure us of building that vitally needed business infrastructure in our distressed Blact, communities and lend a lie to the belief that there will never be a "Top 100 Black Business" in t-iiami or Florida. 84--291 84-291 I m 1 N p2p pOSSM BUDGET FOR FYE 'a' - 84. 001 SAtARIESA%7,GES 100 FICA TNT 130 G �° INSURANCE 150 CU TENSATION .16 0 LTt y I� i": vri' CA�'ENSATION ZU •L pzRso:,'j1EL COST....... � OPERATIt� �E►?SES 270 PRGFESSIG',�L SERVICES . 280 hCCO'Jt�'TIt.S/AUDITING. 420 TRAM Ajm PER DIEM 510 Cci j`u=IZC7tiTION SERVICES 533 POS17'GE . 540 UTILITY 610 pz„7;-vzpr�lT 620 RE: - SPACE G 4 0 PROP c T Y LLABILITY INSUR='' i 67 0 REPAI SERVICES rJmu CAPIT,%L CEVVEL P'NUNT.. I: . MI11MI. CITYWIDE DP► INC. WDI S 218,467 14,637 12,240 1,815 1,100 $ 248,259 7,200 8,325 8,154 6,030 1,125 r 2,633 19,006 945 675 2,025. �� rsrc�z $ 86,476 5,794 i . 9,215 750 900 $ 103,335 Ej 7,200 8,325 8,I.54 6,030 1,125 2,632 19,006 945 675 2,025_ $ 74,823 5,013 2,465 630 300 $ 83,231 $ 21,600 1,850 1,812 1,340 250 585 4,4SS 210 150 450 TOTI'tr� $ 379,766 25,444 23,92- 3,195 2,300 $ 434,625 $ 36.,000 . i MIAMI cNPITAL DZ=P'*" Nr, zNc. M + cl7AgIDD DE EMPhIENT, z� • Mimi BUDGET SUCH FIscAL YEAR 1983/84 MM rxwos Tolm PFppOSID SET Foy — $ 61000 $ 21700 $ 2,700 $ 600 560 5,600 G90 AL�TISING 2,520 2, 520 60 600 700 CY'ICE SUPPLIES ' 27Q 270 200 2,000 '' - 722 Ors yll�� SUPPLIES' T 900 900 5,000 760 PJ: r p � •ZCATIONS, 5,000 $ 164,170 84 0 C':F I�irii pT;},Y m'vTL,-r. . naFRATING E}��5� • • • . ' $ 598,795 � i S N �t dff. t 1 11111111111411 LIN FISCAL YEAR 1983/84.BUDGET NARRATIVE BY 10NE ITE14 . 45% 45`6 - CD FUNDS EDAFUNDS MCWDI PERSONNEL SERVICES 001 SALARIES & WAGES (See Attached) 100 FICA TAXES 130 GROUP INSURANCE 150 - WORKMAN'S COMPENSATION 160' UNEMPLOYMENT COMPENSATION $;170,895 11,450 10,764 1,438 . 1,035 OPERATING EY,PENSES 270 PROFESSIONAL SERVICES A. Legal Services and 0 & B/ .-Credit Services g, Consulta+�,��.for special Studies NOC) 8 Projec�s (Private Consultants HALCYON, INC. ZgQ ACCOUNT IrrG & 11UDITING Annual Audit and Tax Preparation will be performed by Price Vaterhouse N GD 7,200 1709895 $ 371,976 ' 11;450 2,544 10,764 29392 1; 438 319 11035 60 8,325 - 8,3255 1,85Q 420 TRAVEL & rEF, DIEM 812 OUT OF T C'; N 8,154 tey -rips each for .11pprcx;-a�3 P 8 professional staff members $650/ Exam ")I r,f rro�4cted F,3/D4 Travel; NDC Train,^ Courses,' Fla IDC tdeetings,. CUED IFeet'-js- SiuC ":eetin,s, Financial Analyst and Creative r..inanamv Training Courses and Travel to Federal Offices in Atlanta, Geor• ia; ;Jashington, D. C:+ an State of Florida Agency Offices in Tallahassee, TO_ T_ AE 169000 ,u r (.'210 ,X 12 = 2,500) FISCAL AR. 1963/84.BUDGET YEAR NARRATIVE BY LINE ITE14 45% CO FUNDS 45% EDA FUNDS 10% !4CWDI PERSONNEL SERVICES $170,895 $ 37,976 001 SALARIES & WAGES (See Attached) $,1701,895 11,450 11 ;450 2,544 100 FICA TAXES • 10,764 10,764 29392 130 GROUP INSURANCE 319 • 150 - WORKMAN'S COMPENSATION 19438 1;438 160' UNEMPLOYMENT COMPENSATION 11035 11035 230 TOTAL $379.766- 25,444 23,920 3 11;7%0 ri cz, 29300 70 R�'AIRi�e.Ls SEW S31IN1 CE .w �.. �v i• Y i•Iachine $1,189 >80 Card S MLYDI Eract'4res MLW CAPITAL DEV=PMEW, INC. . MIAMI CITXWIDE DLV=' 1"ML• 4T INC; F1SCtiL XL:AIt 1993/04 , . . . ...BUD.tu.MIATm .BY .LINE .ITEM ........... . GET I : '45% CD FUr1DS 'ESA 7c=S ..10� ett 2�,A 1 iCr Semi-jais 690 �V]��.115�• Via rzaL io, T.V. ard NewspaP=s to aru c,,;Pce our new location and riew prarw- - also Business Publications in Florida. � $ 675 $ 675 150 Z,OZS 450: 2,025 700 OIT ICE SL-'i pLIF-3 XCrox $21000 , r Y and dry 1ra9 Gcn- 11 oLficc (stan1CS, Por S, Pam' /{ -y''r:C1. 1.sr Cl.ve6 a.ea••• /} • 27CL 6�i 1 270 722 cr��s•�� 5�=��?� g and Inciacn 200 ttV Ginn i -C s. othcr HIPS 900 7Ep Y,S, CA1C: s b ....✓�3L�tS �lic, Etas-. ,!yrsri�s-CUr�i t�Or Notary . Miami ilaraidr os, Mianl.�. 41all Strcct Journal • irasiness PAoks, Magazines){.nusinSess Weeks Inc. 1,500 41500 Y i _ s IA MLkml C17iwl[)E D D-7EMPIMEC, INC I rl$c;\L YMR 1983/84 BT-M= h-WATIVE BY tIM.ITEK .. ..... . .... *45%'MA TUMS '45% 'CD CD �pz�1L DLvr�oPtar�rr, IX.rsz1.�MI cl2�oE o�n��, b1IAM7: ql, r•nnT:,_?,czT. FOR FISCAL yUUI 83/84